Given Below Is the Scatter Plot of the Price/earnings Ratio

question 28

True/False

Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 U.S. companies. There appears to be a negative relationship between price/earnings ratio and earnings per share.

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Definitions:

Extraneous Variable

A variable that is not the focus of a study but could influence the results if not controlled or accounted for.

Independent Variable

In a study, the variable that the researcher alters or adjusts to study its impacts on the dependent variable.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, which is expected to change under the influence of the independent variable.

Artificial Settings

Environments created or manipulated by researchers to study behavior in controlled conditions, which may not perfectly mimic real-life situations.