Ramon Determines That in His Neighborhood "Amount of Ice Cream

question 22

Multiple Choice

Ramon determines that in his neighborhood "amount of ice cream consumed" and "number of violent crimes" are positively correlated -- the more ice cream consumed, the more crimes are committed. He concludes that something in ice cream leads people to commit violent crimes. What has Ramon overlooked?

• A) the "third variable" problem as some other variable could lead to an increase in both ice cream consumption and violent crime
• B) the reactive effect as the people in his neighborhood were probably aware that he was observing them, and altered their behavior toward what they thought he wanted to see
• C) his observations are qualitative and therefore inappropriate
• D) he collected his data only after-the-fact

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Definitions:

Contingency Theory

A theory suggesting that the best way to manage an organization depends on the specific circumstances, highlighting the need to adapt to environmental and internal conditions.

External Environment

The conditions, entities, events, and factors surrounding an organization that influence its activities and choices.

Management Accounting System

A framework used by organizations to provide financial and non-financial information to managers for decision-making, planning, and control purposes.

Management Accountant

A professional who focuses on providing financial data and analysis to managers within an organization to aid in decision-making.