Dr Gonzalez Has Just Completed a Correlational Study Where He

question 38

Multiple Choice

Dr. Gonzalez has just completed a correlational study where he found a strong association between parental expectations and children's academic achievement. In other words, children who perform well in school tend to have parents who have high expectations of them. However, Dr. Gonzalez can't tell which variable causes the other. It may be that high expectations cause children to perform better, or that children's better performance cause their parents to have higher expectations. This particular problem is known as

• A)the bidirectional causality problem
• B)the third variable problem
• C)poor external validity
• D)the experimenter expectancy effect

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Definitions:

Risk-Averse

A preference for guaranteed outcomes over those with uncertainty, indicating a desire to avoid risk.

Insurance

A financial product sold by insurance companies to safeguard the purchaser against the risk of loss, damage, or liability.

Premiums

Regular payments made to an insurance company in exchange for coverage, or the additional cost paid for products or services perceived as offering greater value.

Adverse Selection

A scenario in economics where buyers and sellers have access to different information, leading to transactions where the seller is likely to sell goods of lower quality.