Effective Signals

question 270

Multiple Choice

Effective signals

• A) convey useful information from informed parties to uninformed parties.
• B) impose little or no cost on the signaler.
• C) cannot be conveyed accurately when there is an information asymmetry.
• D) can be used by employers to alleviate the moral hazard problem in the workplace.

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Definitions:

Standard Deviation

A metric that quantifies the spread of a dataset around its mean, computed as the square root of the variance.

Variability

A measure of how spread out or dispersed the scores in a dataset are.

Bell Shaped Histograms

Histograms showing the frequency distribution of data that forms a symmetrical, bell-shaped curve, indicating a normal distribution.

Histograms

Graphical representations of the distribution of numerical data, showing the frequency of data within certain ranges.