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To study the effects of physical discomfort on attention, Dr. Lopez conducted the following study: A group of participants were required to keep one hand submerged in cold water (52 degrees). Half of the participants kept their hand in the water for 2 minutes, and half of the participants kept their hand in the water for 4 minutes. In addition, half of the participants were given a placebo pill and told it would reduce the pain of the water (pain relief assumed). The other half were given a placebo pill and told that it would have no effect (no pain relief assumed). While their hands were in the water, participants were asked to watch a video where a ball is quickly passed between and underneath three cups. At the end of the video, participants were asked to indicate under which cup the ball could be found. Whether or not the participant picked the correct cup was recorded (as a measure of whether they were paying attention). The results are below.
Name the independent variables in this study and describe their levels.
Capital Budgeting
The process of planning and managing a company's long-term investments in projects and assets.
What-If Questions
Hypothetical questions used to explore the effects of changes in variables or conditions, often used in planning and decision making.
Forecasting Risk
The possibility of error in projecting future values such as revenues, costs, or stock prices, due to uncertainty about future events.
Initial Investment
Refers to the initial capital outlay or amount of money invested to start a project or investment.
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