A University Studied Students' Grades and Established a Strong Positive

question 27

Multiple Choice

A university studied students' grades and established a strong positive association between the high school average of incoming students and their university GPA.Describe three different possible cause-and-effect relationships that might be present.

• A)Perhaps higher high school averages cause higher university GPAs,or both could be caused by a lurking variable such as the students' IQ.
• B)There is only one cause-and-effect relationship: higher university GPAs cause higher high school averages.
• C)There is only one cause-and-effect relationship: higher high school averages cause higher university GPAs.
• D)There are only two cause-and-effect relationships: higher high school averages cause higher university GPAs,or higher university GPAs cause higher high school averages.
• E)Perhaps higher high school averages cause higher university GPAs,higher university GPAs cause higher high school averages,or both could be caused by a lurking variable such as the students' high school.

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Definitions:

Variable Costs

Costs that fluctuate with the level of production or sales volume, such as materials and labor.

Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced or sold.

Operating Income

The profit realized from a business's ongoing operations, calculated before taxes and interest payments are deducted.

Variable Cost

Costs that fluctuate in direct proportion to changes in production volume or activity levels.