A Study Shows That the High Turnover Rate at a Company

question 39

Multiple Choice

A study shows that the high turnover rate at a company is only caused by the domineering attitude of a middle manager. What criteria of causal inference does this example show?

• A) The study was conducted in an open environment.
• B) No alternative explanation exists for the correlation.
• C) The presumed effect precedes the presumed cause in time.
• D) The two variables are not correlated.
• E) The sample size is large enough.

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Definitions:

Foreign-Currency Exchange

The system or process of converting one national currency into another and determining the exchange rates.

Government Budget Deficit

An economic condition occurring when government expenditures exceed its revenue in a fiscal period.

Interest Rate

The percentage charged or earned on a principal sum of money or an investment over a specified period of time.

Net Capital Outflow

The difference between the domestic purchases of foreign assets and the foreign purchases of domestic assets.