A Researcher Was Interested in Predicting Whether a Person Would

question 18

Multiple Choice

A researcher was interested in predicting whether a person would attempt to commit suicide (score = 1) or not (score = 0) from their depression scores. They found that the value of Exp(B) (the odds ratio) was 2.56. How should this value be interpreted?

• A)2.56 times more people who attempted suicide scored highly on depression.
• B)If two people have depression scores that differ by 1 unit, then the odds of the person with the higher score attempting suicide are is 2.56 lower than for the other person.
• C)If two people have depression scores that differ by 1 unit, then the odds of the person with the higher score attempting suicide are 2.56 higher than for the other person.
• D)25.6% of the variance in suicide attempts is explained by depression.

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company’s equity shares at certain times during their life, usually at the discretion of the bondholder.

Traded Stock

Shares of a company that are bought and sold in public markets, such as stock exchanges, representing ownership interests in the corporation.

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date at a predetermined price.

Buy Back

The process by which a company repurchases its own shares from the marketplace, reducing the amount of outstanding stock.