If Mediation Has Taken Place Between the Predictor and the Outcome

question 20

Multiple Choice

If mediation has taken place between the predictor and the outcome variable, what is likely to happen to the relationship?

• A) The strength of the relationship will have decreased.
• B) The strength of the relationship will have increased.
• C) The strength of the relationship may increase or decrease.
• D) The strength of the relationship should remain constant.

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Definitions:

Payback Criterion

A capital budgeting method that measures the time required to recoup the initial investment in a project.

Mutually Exclusive

Referring to events or choices that cannot occur or be taken simultaneously; selecting one option excludes the availability or selection of the other.

Payback Cutoff

The maximum acceptable period within which an investment should recover its initial costs, used as a criterion for investment decisions.

Net Present Values

The calculation of the present value of an investment's expected cash flows minus the initial investment cost.