Which of the Following Is an Example of Regression Toward

question 174

Multiple Choice

Which of the following is an example of regression toward the mean?

• A)People who originally score near the average on some trait are measured a second time, and their new score falls at the extreme high or low end of the scale.
• B)People who originally score extremely high or low on some trait are measured a second time, and their new score falls closer to the average.
• C)People recover from a mental or physical illness without any form of intervention.
• D)People's expectations lead them to experience some change, even though they receive a fake or ineffective treatment.

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Definitions:

Prepaid Expenses

Upfront costs incurred for items or services that are to be obtained in the upcoming time.

Accrued Expenses

Expenses that have been incurred but not yet paid, representing liabilities on the balance sheet.

Assets

Assets are resources controlled by a company as a result of past events and from which future economic benefits are expected to flow to the entity.

GAAP

Set of accounting standards and principles designed to ensure consistency, fairness, and transparency in financial reporting.