To Examine the Value of Looking at Old Tests, Professor

question 77

Multiple Choice

To examine the value of looking at old tests, Professor King hands out copies of old tests to the first 20 students who come to class one day. Later she finds that these students got better grades than the other students in the class. What is wrong with this experiment?

• A) It was triple blind.
• B) There is a lack of random assignment to groups.
• C) There is a lack of demand characteristics.
• D) The Clever Hans effect occurs.

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Net Income

The profit of a company after all expenses and taxes have been subtracted from revenue.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, out of its profits.

Free Cash Flow

The cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and interest.