An Experimental Design Is a Procedure for Ensuring That

question 25

Multiple Choice

An experimental design is a procedure for ensuring that:

• A) the change in the dependent variable may be solely attributed to the change in the independent variable
• B) the change in the independent variable may be solely attributed to the change in the complex variable
• C) the change in the dependent variable may be solely attributed to the change in the extraneous variable
• D) any and all effects on all experimental values are measured
• E) the manipulation made on the complex variable is measured accurately

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Definitions:

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, a measure of how sales growth translates to growth in operating income.

Forecasting Error

The difference between the actual outcome and the predicted value in a forecast.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company's fixed versus variable costs.

Variable Costs

Expenses that change in proportion to the level of production or sales, such as raw materials and labor costs.