Exhibit 7-4: a Group of Researchers Has Developed a Method

question 41

Multiple Choice

Exhibit 7-4: A group of researchers has developed a method that they hypothesize will improve physics test scores.They randomly selected nine students to participate in their study.The nine students were administered an ACT test, trained in the new method, and then administered an alternate form of the ACT test.The following data are their scores:
$\begin{array}{lll}\text {Subject } & {\text {Test 1 }}{} & \text {Test 2 } \\ 1 & 20 & 19 \\ 2 & 20 & 20 \\ 3 & 24 & 21 \\ 4 & 24 & 24 \\ 5 & 24 & 22 \\ 6 & 17 & 15 \\ 7 & 18 & 15 \\ 8 & 18 & 16 \\ 9 & 20& 18\end{array}$
-Refer to Exhibit 7-4.The degrees of freedom for the test are the

• A) number of rows -1 time the number of columns -1.
• B) number of pairs of numbers -1.
• C) total number of cases -2.
• D) none of these are true.

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Definitions:

Constant-Growth Model

A method used to value a company's stock by assuming a constant rate of dividend growth, often used for companies with stable growth rates.

Market Return

The total return, including capital gains and dividends, from investing in a broad market index over a specified period.

IPO Pops

The phenomenon where the price of a stock rises significantly above its initial public offering price shortly after it starts trading on the public market.

Secondary Market

This is a market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.