In the Experiment, the Purpose of Random Assignment of Participants

question 38

True/False

In the experiment, the purpose of random assignment of participants into groups is to ensure that the characteristics of the participants in one group are about the same as the characteristics of the participants in other groups.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed to variable costs in a company's cost structure.

Financial Leverage

The use of borrowed capital or debt to increase the potential return of an investment, amplifying both potential gains and losses.

Operating Leverage

A measure of how sensitive a company’s operating income is to a change in its sales volume, emphasizing the cost structure between fixed and variable costs.

EBIT

A gauge of company profits, Earnings Before Interest and Taxes, leaves out the charges for interest and taxes to show raw earnings.