Which of These Statements Explains Why Indicator Variables Are Used

question 42

Multiple Choice

Which of these statements explains why indicator variables are used to study concepts?

• A) Sociologists have no way of measuring concepts.
• B) Concepts cannot be observed directly.
• C) Concepts cannot be included as variables in a study.
• D) Indicators are more easily defined.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to known amounts of cash with original maturities of three months or less.

Allowance Method

A method in accounting that involves estimating the accounts that are uncollectible at the end of each period to account for bad debts.

Receivables

Amounts owed to a company by customers or other parties as a result of the company providing goods or services on credit.

Bankruptcy

A judicial process concerning an individual or enterprise that cannot fulfill its debt obligations.