Mistakes Describe the Mistake Made in the Following Analyses

question 31

Essay

Mistakes. Describe the mistake made in the following analyses:
a. Ten teachers compute their average test scores for all their students. Then the superintendent collects their data and finds the school average. He repeats this process for eight different schools and finds a positive correlation between the age of the school average age of the teachers at a school and their average score.
b. The mayor of a city is concerned that the population of the city is growing faster than revenue. He calculates that over the last 5 years, the year and the size of the city have a R-sq of 95.7%. With such a high value, the may or confidently predicts the population for the next three years of fiscal planning.

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Definitions:

Shares "Owed"

Likely incorrect or a misunderstanding; potentially refers to shares that are borrowed and need to be returned in transactions such as short selling (NO real key term).

Cash Dividend

This is a payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Earnings

The amount of profit that a company generates during a specific period, which can be used to measure the company's financial health and profitability.

Stockholders

Individuals or entities that own shares of stock in a corporation, having ownership interest in the company.