DrDenny Has Just Discovered a Perfect Positive Correlation Between Hours

question 236

Multiple Choice

Dr.Denny has just discovered a perfect positive correlation between hours of studying and grades in students who pay for their own education.Based on this,what can Dr.Denny conclude?

• A) Studying for more hours causes better grades.
• B) Getting better grades causes students to want to study more.
• C) The number of hours of studying and grades are both caused by a good work ethic.
• D) Causal conclusions are not possible here.

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Definitions:

Effective Interest

The real cost of borrowing or the actual interest rate earned, considering compounding and fees.

Amortize Discount

The gradual reduction of a bond discount over the life of the bond, expensed as interest over the period.

Straight-Line Method

The Straight-Line Method is a way of calculating depreciation of an asset, where the asset's cost is evenly spread over its useful life.

Other Than Temporary

Classification of impairments or losses indicating that the reduction in value is not expected to reverse in the near future.