After Examining the FBI Crime Reports for a 30-Year Period

question 28

Multiple Choice

After examining the FBI Crime Reports for a 30-year period, Professor Hall claimed that the incidence of rape has increased. After examining the same reports, Professor Shine claimed that the reporting of rape, not the incidence of rape, has increased. This illustrates:

• A)the problem of reliability in using existing statistics.
• B)the problem of validity in using existing statistics.
• C)the need to replicate existing statistics.
• D)the ecological fallacy.
• E)pretesting.

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Definitions:

Net Income

Net income is the profit a company makes after deducting all its costs, expenses, interest, and taxes from its total revenues.

Book Value

The worth of an asset as stated in its balance sheet, factoring in the original cost of the asset reduced by depreciation.

Equity Method

An accounting technique used by a company to record its investment in another company, typically when it has significant influence but does not fully control it, usually through owning 20% to 50% of the voting stock.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company’s profits through dividends.