Your CEO Has Followed Your Advice and Now Wants You

question 7

Multiple Choice

Your CEO has followed your advice and now wants you to measure effect sizes. You report a Pearson's r of 0.50 for the impact of Unblock Me Now drain cleaner on reducing drain blockage time. Your CEO wants to know if this is bad, as she remembers that a p-value of 0.30 is not good. What do you tell her?

• A) You tell her that effect size and p-values are not the same and that a Pearson's r of 0.50 is a medium effect, suggesting she should rollout the launch of Unblock Me Now.
• B) You tell her that effect size and p-values are not the same and that a Pearson's r of 0.50 is a small effect, suggesting she should stop the launch of Unblock Me Now until more data analysis is done.
• C) You tell her that effect size and p-values are the same and that a Pearson's r of 0.50 means there is no statistically significant effect. Unblock Me Now should cease production.
• D) You tell her that effect size and p-values are not the same and that a Pearson's r of 0.50 is a large effect, suggesting she should rollout the launch of Unblock Me Now.

---

Definitions:

Allowance for Doubtful Accounts

An estimation of the accounts receivable that is not expected to be collected, reducing the gross receivables to the amount that is expected to be collected.

Bad Debt Expense

An expense reported in the financial statements, representing accounts receivable that a company does not expect to collect from its customers.

Allowance Method

A method in accounting that estimates uncollectible accounts to account for potential bad debts at the conclusion of each period.

Estimated Uncollectible

An accounting term for the prediction of the amount of receivables that will not be collected from customers, also known as allowance for doubtful accounts.