Regression Toward the Mean Occurs Because

question 4

Multiple Choice

Regression toward the mean occurs because:

• A)measurement is almost always biased in one way or another
• B)measurements are usually a mixture of true scores and error
• C)no two measurements are ever exactly the same
• D)the act of taking a test usually influences people's future scores on the test

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Definitions:

Profit-maximizing

The process of adjusting production and pricing strategies to achieve the highest possible profit from the sale of goods and services.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed.

Economic Profit

The difference between total revenue and both explicit and implicit costs; the profit that exceeds the opportunity cost of resources.

Perfectly Competitive Markets

Markets in which no individual buyer or seller has any significant impact on prices and products are perfect substitutes.