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Professor Maddox Collects Data Showing a Correlation Between Grades and Happiness

question 4

Multiple Choice

Professor Maddox collects data showing a correlation between grades and happiness. He concludes that being happy helps students to get better grades. Which of the following illustrates the "directionality problem" in Professor Maddox's conclusion?


Definitions:

Utility

A measure of satisfaction, usefulness, or value that an individual receives from consuming a good or service.

Level of Satisfaction

The degree to which needs, desires, or expectations are fulfilled or gratified.

Marginal Utility

The change in satisfaction or utility received by consuming one additional unit of a good or service.

Limited Usefulness

Refers to the notion that a tool, resource, or piece of information is only beneficial or applicable in certain situations or to a certain extent.

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