A Researcher Finds That for a Particular Trait, the Correlation

question 106

Multiple Choice

A researcher finds that for a particular trait, the correlation between identical twins is greater than is the correlation between nontwin siblings. This result demonstrates that

• A) environmental factors are important in the development of this trait.
• B) genetic factors are important in the development of this trait.
• C) genetic factors are not important in the development of this trait.
• D) environmental factors are not important in the development of this trait.

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Definitions:

Required Rate

The minimum expected rate of return on an investment, determined by assessing risk levels and market conditions.

Credit Policy

A set of guidelines that a company follows to determine credit terms for customers, which influences decisions such as payment periods and credit limits.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows over a period.

Monthly Interest Rate

The fraction of the annual interest rate divided by twelve, representing the interest for a single month.