A Researcher Is Testing the Hypothesis Stating a Positive Relationship

question 26

Multiple Choice

A researcher is testing the hypothesis stating a positive relationship between business owners' level of risk tolerance and the insurance coverage for the business. To test this, the researcher uses a set of prescribed procedures for establishing and connecting theoretical statements about these two constructs, for analyzing empirical evidence gathered through surveys, and for predicting future behavior. This researcher is following the _____.

• A) hypothetical method
• B) scientific method
• C) deductive method
• D) inductive method

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Definitions:

Goods and Services

The output produced by an economy, including tangible products (goods) and intangible activities (services) that fulfill the needs or wants of consumers.

Profitable

A financial status where the income earned is greater than the expenses incurred, leading to a positive net income.

Invisible Hand

A concept proposed by Adam Smith, describing the self-regulating nature of the marketplace that guides individuals to unintentionally promote societal benefits through their own self-interest.

Self-Interest

Acting in a way that is most personally beneficial, often guiding economic decisions and behaviors.