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SCENARIO 11-9
Psychologists have found that people are generally reluctant to transmit bad news to their peers.This
phenomenon has been termed the "MUM effect." To investigate the cause of the MUM effect, 40
undergraduates at Duke University participated in an experiment.Each subject was asked to
administer an IQ test to another student and then provide the test taker with his or her percentile
score.Unknown to the subject, the test taker was a bogus student who was working with the
researchers.The experimenters manipulated two factors: subject visibility and success of test taker,
each at two levels.Subject visibility was either visible or not visible to the test taker.Success of the
test taker was either top 20% or bottom 20%.Ten subjects were randomly assigned to each of the 2
x 2 = 4 experimental conditions, then the time (in seconds) between the end of the test and the
delivery of the percentile score from the subject to the test taker was measured.(This variable is
called the latency to feedback.) The data were subjected to appropriate analyses with the following
results.
-Referring to Scenario 11-9, at the 0.01 level, what conclusions can you reach from the
Analysis?
Net Income
The financial gain a company realizes after all deductions, including taxes and costs, are taken from revenue.
Total Assets
The sum of all assets owned by an individual or organization, including cash, investments, property, and other valuables, representing the total resources available for use in generating future income.
Total Asset Turnover
A financial efficiency ratio that measures how effectively a company uses its assets to generate sales revenue.
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