Laura Is Designing a Study of the Extent to Which

question 38

Multiple Choice

Laura is designing a study of the extent to which standardized achievement test scores in high school predict college GPA using a large dataset of 50,000 students. Which of the following potential problems is most important to consider?

• A) The sample size may be too small to detect a correlation.
• B) The sample size may result in a correlation that is practically unimportant.
• C) The variables require the use of a phi coefficient.
• D) The sample size may require factor analysis.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profits.

Unsold Units

Unsold units refer to products that have been produced or acquired by a business but have not yet been sold to customers.

Variable Costing

A costing method that only includes variable production costs—costs that change with the level of output—in product pricing.

Unsold Units

Inventory items that have not been sold during a specific period, representing stock still available for sale.