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Exhibit 13-6: a Researcher Collects the Following Measures on a Sample

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Exhibit 13-6: A researcher collects the following measures on a sample of college students: scores on the SAT and the ACT, scores on an English composition test, high school class rank, scores on a noncognitive measure, whether or not students successfully completed the first year of college (pass-fail) , and their GPA.Choose the statistical procedures that the researcher should use to answer the following questions.
-Refer to Exhibit 13-6.Does the combination of variables predict whether or not students successfully completed the first year of college?


Definitions:

Permanent Differences

Differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting the effective tax rate.

Temporary Differences

Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, leading to deferred tax assets or liabilities.

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Pretax Financial Income

Income of a company calculated before taxes are deducted, often compared to taxable income for tax planning.

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