Dr Guidry Conducts a Study Examining the Relationship Between the Number

question 39

Multiple Choice

Dr. Guidry conducts a study examining the relationship between the number of friends one has and the experience of daily stress and life satisfaction. She randomly samples 1,500 elderly men and women in Nashville, Tennessee (the state capital) , located in the southern United States. Below are her findings.
•Life satisfaction and experience of daily stress: r =.57 (p = .01)
•Number of friends one has and experience of daily stress: r = .09, not sig.
•Number of friends one has and life satisfaction: r = .36 (p = .04)
Dr) Guidry submits her study for publication in a scientific journal. If one of the peer reviewers is concerned about the external validity of her study, which of the following is the most important aspect of Dr. Guidry's study to consider?

• A)The random sampling technique used to recruit the participants
• B)The number of people in the sample
• C)The use of three measured variables
• D)The number of significant findings

---

Definitions:

Profitability Index

The Profitability Index is a financial metric that compares the present value of future cash flows generated by a project to the initial investment, used to assess the attractiveness of an investment.

Average Accounting Return

A method of measuring an investment's profitability by comparing its average net income to its average book value.

Return on Assets

A profitability ratio that measures how efficiently a company is using its assets to generate profit, calculated by dividing net income by total assets.

Shareholder Wealth

The total value of an investment in a company's stock, encompassing capital gains and dividends received over time.