In Observation Research,a Distortion of Measurement Resulting from the Cognitive

question 40

True/False

In observation research,a distortion of measurement resulting from the cognitive behavior or actions of the witnessing observer is called selectivity bias.

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Definitions:

Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost price.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.

Markup

The increment added to the acquisition cost of products to address company overheads and earn profit.

Absorption Costing

An accounting method where all manufacturing costs, including both variable and fixed, are absorbed by the products.