Professor Thames Tried to Use a Guttman Scale on His

question 28

Multiple Choice

Professor Thames tried to use a Guttman scale on his data set that he had seen published in a major journal. Thames was upset because the items did not form a Guttman scale on his data. Confused, he asked for your help. You should tell him that:

• A)the article that appeared in the journal was probably an error.
• B)he should recheck his scaling techniques because he probably made an error.
• C)items may form a Guttman scale in one sample but not in another.
• D)it was probably not a very good scale.
• E)a Guttman scale can only be used in a univariate analysis.

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Definitions:

Operating Income

The profit realized from a business's core operational activities, excluding deductions of interest and tax.

Unit Selling Price

The amount of money charged for each individual unit of a product or service.

Contribution Margin Ratio

A financial ratio that measures the profitability of a product by subtracting variable costs from sales and dividing the result by total sales.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.