Which of the Following Statements Is FALSE While Determining the Relative

question 33

Multiple Choice

Which of the following statements is FALSE while determining the relative strengths of the items of bivariate relationships?

• A)Be wary of including items in a composite measure that are not related to one another empirically.
• B)One should probably drop any item that is not related to several other items in the composite measure.
• C)Variable very strong relationship between two items presents a problem.
• D)One must check the bivariate correlations between all items that one plans to include in the composite measure.
• E)You should strive for perfectly correlated (1.0)indicators within a composite measure.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, influencing decisions about whether to engage in activities that will produce additional income.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a tax authority.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, typically taken as a percentage of wages.

Taxable Income

The amount of an individual's or a corporation's income that is subject to taxes, after all deductions and exemptions.