Carlos,the President of a Fraternity on Campus,randomly Sampled 500 Students,asked

question 132

Multiple Choice

Carlos,the president of a fraternity on campus,randomly sampled 500 students,asked them if they belonged to a fraternity or sorority,and asked them about their current GPA.He discovered that the GPAs of those people in fraternities and sororities are higher than those of people who are not involved in the Greek system.Gleefully,he presented his findings to the Dean,saying that being involved in a fraternity or sorority leads to higher grades.What rule of research methods is Carlos breaking?

• A)Correlation does not equal causation.
• B)College students are not representative of the whole sample of people in the world.
• C)His sample size of 500 is too small to make such a generalization.
• D)Correlational data do not provide any practical information on a topic.

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Definitions:

Commercial Substance

A concept in accounting that a transaction has commercial substance if it significantly changes the economic circumstances of the entities involved.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Fair Value

A valuation method that approximates the amount for which an asset could be bought or sold in a current transaction between participants at arm's length.

Book Value

The net value of an asset or liability according to its balance sheet account balance, taking into account the cost of the asset and accumulated depreciation.