DrTrantham Obtains the Following Data from a Large Sample of Community

question 171

Multiple Choice

Dr.Trantham obtains the following data from a large sample of community dwelling older adults: 1) "mental exercise" scores -- the average time spent on crosswords,brainteasers,and other puzzles each week; 2) physical exercise scores -- the average time spent on aerobic exercise each week; and 3) scores on a measure of overall current cognitive functioning.She then computes two correlation coefficients: one between mental exercise scores and scores on the measure of cognitive functioning,and one between physical exercise scores and cognitive functioning.Based on your text's discussion,which of the following pairs of coefficient is she most likely to find?

• A) mental exercise and cognitive functioning: .15; physical exercise and cognitive functioning: .15
• B) mental exercise and cognitive functioning: .15; physical exercise and cognitive functioning: .35
• C) mental exercise and cognitive functioning: .35; physical exercise and cognitive functioning: .15
• D) mental exercise and cognitive functioning: .35; physical exercise and cognitive functioning: .35

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Definitions:

Tax Policy

The laws and regulations governing how taxes are collected and managed by the government, influencing economic behavior and distribution of resources.

Individual Tax Rate

The tax rate applied to an individual's income, which varies depending on income level and filing status, contributing to the progressive taxation system.

Capital Gains

Capital gains are the profit made from the sale of an asset or investment which has increased in value over the holding period.

Current Income

Earnings derived from investments or employment that are received regularly, such as dividends or salaries.