Ellie Has Migraine Headaches on a Regular Basis

question 5

Multiple Choice

Ellie has migraine headaches on a regular basis.If she lies down as she feels a headache arising,she can prevent a migraine from developing.Her doctor prescribes a new medication that is 95 percent effective in preventing migraines.Ellie takes the medication but also continues to lie down when she feels a migraine coming on.Three months after he writes the prescription,the doctor asks her whether it has helped her.According to the two-factor theory of avoidance learning,Ellie

• A) wouldn't know,since she lies down when she feels a headache developing.
• B) would probably say the medication works and she has not had a headache in three months.
• C) would probably tell the doctor she took the medication but doesn't think it works.
• D) wouldn't know because she is not a doctor.

Realize the difference between a firm's target and optimal capital structure.

Acknowledge how financial leverage affects a firm's ROA and cost structure.

Understand the role of EBIT-EPS analysis in evaluating leverage decisions.

Learn about operating leverage and its consequences on a firm's risk profile.

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Definitions:

Instinct

Natural, unchanging behaviors exhibited by animals in reaction to specific triggers.

Drive-Reduction

A theory of motivation that posits the reduction of physiological needs drives behavior towards achieving homeostasis.

Arousal Approach

a theory in psychology that focuses on how arousal levels affect performance, suggesting an optimal level of arousal for peak performance depending on the task complexity.

William McDougall

A psychologist known for his work on instinct theory and social psychology, advocating for the inclusion of innate tendencies in explaining behavior.