Which Statement Is Not True When Deciding on Whether to Use

question 84

Multiple Choice

Which statement is not true when deciding on whether to use balanced or unbalanced scales when developing a non- comparative itemized rating scale?

• A) The scale should be balanced to obtain objective data.
• B) If the distribution of responses is likely to be skewed, either positively or negatively, a balanced scale with more categories in the direction of skewness may be appropriate.
• C) In a balanced scale, the number of favorable and unfavorable categories are equal.
• D) If an unbalanced scale is used, the nature and degree of unbalance in the scale should be taken into account in data analysis.

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Definitions:

Green Shoe Option

A clause in an IPO that allows underwriters to buy and sell additional shares than originally planned, stabilizing the stock price.

Underpricing Effect

The phenomenon where new stock offerings are priced below their market value, often leading to an immediate increase in their price upon trading.

Market Price

The prevailing transaction price for an asset or service.

Securities

Securities are financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.