A Psychologist Was Interested in Whether the Amount of News

question 1

Multiple Choice

A psychologist was interested in whether the amount of news people watch predicts how depressed they are.In this table,what does the value 3.030 represent?

• A)The improvement in the prediction of depression by fitting the model
• B)The ratio of how much the prediction of depression has improved by fitting the model,compared to how much error still remains
• C)The ratio of how much error there is in the model,compared to how much variability there is in depression scores
• D)The proportion of variance in depression explained by news exposure

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Definitions:

Economic Life

The estimated period over which an asset is expected to be economically useful to the owner.

Sales-Type Lease

A lease agreement where the lessor recognizes profit or loss upfront due to the difference between the fair value of the asset and its carrying amount.

Initial Direct Costs

Expenses directly associated with obtaining or originating a financing lease, which are often deferred and amortized over the lease term.

Interest Rate Implicit

The interest rate implicit in a lease is the rate of interest that, when applied to the cash flows of the lease, causes the present value of these flows to equal the fair value of the leased asset at the inception of the lease.