Some Researchers Believe That a Mid-Point, or Neutral Position, Should

question 45

Multiple Choice

Some researchers believe that a mid-point, or neutral position, should NOT be included in a scale question because:

• A) it violates the statistical assumption of symmetry
• B) it creates an odd number
• C) it allows respondents to hide their feelings
• D) it creates a problem in trying to code the scale items
• E) it creates a problem in terms of how you value the neutral point in the calculation of statistics

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Definitions:

Internal Rate

Often refers to the internal rate of return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Mutually Exclusive

Situations or events that cannot both occur at the same time, indicating a clear choice between two options.

Required Rate

The minimum return an investor expects to achieve on an investment to compensate for its risk.

Net Present Value

A financial metric that calculates the value of projected future cash flows, discounted back to their present value.