If We Are Looking to Explore What Predicts Being a Smoker

question 4

Multiple Choice

If we are looking to explore what predicts being a smoker (0 = non-smoker, 1 = smoker) and the model assigns an individual with the predicted value of 0.73, then what does this mean?

• A) The model cannot predict whether this individual is a smoker or a non-smoker.
• B) The model predicts that the individual has a 73% chance of being a non-smoker.
• C) The model predicts that this individual is a smoker who has a good chance of giving up smoking.
• D) The model predicts that the individual has a 73% chance of being a smoker.

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Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations and external investment sources.

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Bonds Payable

Long-term liabilities representing amounts owed by a corporation or government to bondholders, to be repaid at a specified future date.

Receipts

Records of transactions indicating payment made or received.