James Asks His Friend Rob for Advice on How to Increase

question 39

Multiple Choice

James asks his friend Rob for advice on how to increase the power of his experiment.Which of Rob's suggestions is incorrect?

• A)use a larger sample size
• B)use a less diverse population
• C)use a two-tailed instead of a one-tailed test
• D)use a more intense experimental manipulation to increase effect size

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Definitions:

Independent Projects

Investment projects that do not affect each other’s outcomes or acceptability. Evaluating one does not impact the consideration of another.

Mutually Exclusive

Situations or decisions that cannot occur simultaneously; selecting one option precludes the choice of the other.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time; used to evaluate the profitability of an investment.

Internal Rate of Return

The interest rate that brings the net present value of all incoming and outgoing cash flows from an investment or project to a neutral point of zero.