Ability Risk Can Be Described as the Risk That

question 51

Multiple Choice

Ability risk can be described as the risk that:

• A) external factors such as customer preferences, the economy, or product quality will affect sales.
• B) some members of a sales force will have a higher ability than others.
• C) agents may appear to be high ability when they are actually low ability.
• D) tournament pay may hide the true ability of some agents.

---

Definitions:

Positive Linear Relationship

A direct correlation between two variables where an increase in one variable results in an increase in the other.

Population Coefficient

A parameter that represents a characteristic or measure of an entire population.

Significance Level

A statistical term that measures the probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).

Higher Sales

An increase in the quantity of goods or services sold, often regarded as a key indicator of business performance and growth.