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Suppose that I performed a reliability analysis to determine whether high school students' grades in four different subjects (English, Math, Science, Social Studies) formed a reliable scale with a high Cronbach's alpha. I performed the analysis and got the results presented in the two tables below.
a. What is the reliability of this scale, as indicated by the Cronbach's alpha. Is this a high or low level of reliability?
b. Which item seems to be contributing the least to the overall Cronbach's alpha?
c. Which item, if any, would you recommend removing from this scale?
Marginal Revenue
The additional income earned from selling one more unit of a good or service; it's a crucial concept for decision-making in businesses.
Economic Profit
The total revenue of a business minus its explicit and implicit costs, representing the surplus remaining after accounting for all costs, including opportunity costs.
Accounting Profit
The net income of a company after subtracting all costs and expenses from total revenues, as shown in the financial statements.
Competitive Market
A market structure characterized by many buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination through supply and demand.
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