An Analyst Gathers Data on the Number of Hours of Political

question 17

Multiple Choice

An analyst gathers data on the number of hours of political debates watched per week and the sales of antacids. She expects that political debate watching will help explain antacid sales.
The plot of the data in the preceding question shows that people who watch more political debates tend to buy more antacids. The analyst calculates the correlation r between hours of debates and antacids purchased. A plausible value is:

• A) r = -1.
• B) r = -0.4.
• C) r = 0.
• D) r = 0.4.

Recognize the necessary steps a critical thinker must take when encountering claims without basis or reasons.

Identify how strong critical thinkers treat claims standing alone and the relevance of context in evaluating such claims.

Understand the concept of self-contradictory claims and the ability to identify and analyze examples.

Recognize the strategies for examining claims absent any reasons, including assessing plausibility and possible motivations.

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Definitions:

Straight-line Method

A depreciation method that allocates an equal portion of the cost of a fixed asset to each year of its useful life.

Troubled Debt Restructuring

The process of modifying the terms of a debt agreement due to the debtor’s financial difficulties to enhance the likelihood of repayment.

Extraordinary Gains

Gains that are both unusual and infrequent in nature, typically reported separately in financial statements to provide clarity on a company's ordinary income.

Settlement

The resolution of a transaction or dispute, involving the transfer of funds or assets, or the fulfillment of contractual obligations.