Professor Falls Wants to Determine If There Is a Relationship

question 13

Multiple Choice

Professor Falls wants to determine if there is a relationship between frequent hearing of a startle stimulus and hearing loss. He ran a regression and obtained an r value of .60. Which of the following best summarizes what this result means?

• A) 60% of hearing loss is accounted for by frequency of hearing startle stimuli.
• B) 36% of the variability in hearing loss can be accounted for by variability in the hearing of startle stimuli.
• C) 36% of startle stimuli cause hearing loss.
• D) 60% of hearing loss is caused by startle stimuli.

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Definitions:

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method.

Tax Purposes

The specific reasons or objectives behind the calculation or payment of taxes, often influencing financial decisions and reporting.

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation applied in the United States that allows for faster write-offs of assets to encourage investment.

Class Life

The expected useful lifetime of a fixed asset, which determines the depreciation rate for tax and accounting purposes.