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# Levels of Measurement Pratice Questions

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18. Refer to the Wage data, which reports information on annual wages for a sample of 100 workers. Also included are variables relating to industry, years of education, and gender for each worker.
a. Which of the 12 variables are qualitative and which are quantitative?
b. Determine the level of measurement for each variable.

Several years ago, a series of TV advertisements reported that "2 out of 3 dentists surveyed indicated they would recommend Brand X toothpaste to their patients." The implication is that 67 percent of all dentists would recommend the product to their patients. What if they surveyed only three dentists? It would certainly not be a true representation of the real situation. The trick is that the manufacturer of the toothpaste could take many surveys of three dentists and report only the surveys of three dentists in which two dentists indicated they would recommend Brand X. This is concealing the information to mislead the public. Further, a survey of more than three dentists is needed, and it must be unbiased and representative of the population of all dentists.
The term average refers to several different measures of central location that we
discuss in Chapter 3. To most people, an average is found by adding the values involved and dividing by the number of values. So if a real estate developer tells a client
An average may not be representative of all the data.that the average home in a particular subdivision sold for \$150,000, we assume that
\$150,000 is a representative selling price for all the homes. But suppose there are only
five homes in the subdivision and they sold for \$50,000, \$50,000, \$60,000, \$90,000,
and \$500,000. We can correctly claim that the average selling price is \$150,000, but
does \$150,000 really seem like a "typical" selling price? Would you like to also know
that the same number of homes sold for more than \$60,000 as less than \$60,000? Or
that \$50,000 is the selling price that occurred most frequently? So what selling price
really is the most "typical"? This example illustrates that a reported average can be
misleading, because it can be one of several numbers that could be used to represent
the data. There is really no objective set of criteria that states what average should be
reported on each occasion. We want to educate you as a consumer of data about how
a person or group might report one value that favors their position and exclude other
values. We will discuss averages, or measures of central location, in Chapter 3.
Sometimes numbers themselves can be deceptive. The mean price of homes
sold last month in the Tampa, Florida, area was \$134,891.58. This sounds like a very
precise value and may instill a high degree of confidence in its accuracy. To report that the mean selling price was \$135,000 doesn't convey the same precision and accuracy. However, a statistic that is very precise and carries 5 or even 10 decimal places is not necessarily accurate.

3-41 High-Low Method
Manchester Foundry produced 45,000 tons of steel in March at a cost of £1,150,000. In April, the foundry produced 35,000 tons at a cost of £950,000. Using only these two data points, determine the cost function for Manchester

Analysis of liquidity and profitability measures of Gateway, Inc. (Check our website
for future updates.) The following summarized data (amounts in thousands) are
taken from the December 31, 1999, and 1998, comparative financial statements of
Gateway, Inc., a direct marketer and distributor of personal computers (PCs) and PCrelated
products:
(Amounts expressed in thousands) 1999 1998
For the Year Ended December 31:
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$8,645,561 \$7,467,925
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,745,744 5,921,651
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595,670 494,227
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 427,944 \$ 346,399
At December 31:
Assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$1,127,654 \$1,169,810
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,717 158,657
Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 646,339 558,851
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,870 167,924
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522,225 172,944
Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . . . . . 745,660 530,988
Intangibles, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,302 65,944
Other noncurrent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459,921 65,262
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$3,954,688 \$2,890,380
Liabilities and Owners' Equity
Current maturities of long-term obligations . . . . . . . . . . . . . . . . \$ 5,490 \$ 11,415
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 898,436 718,071
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609,132 415,265
Accrued royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,840 167,873
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,812 117,050
Long-term obligations, net of current maturities . . . . . . . . . . . . . 2,998 3,360
Warranty and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,862 112,971
Common stock and additional paid-in capital . . . . . . . . . . . . . . 660,070 367,552
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,408,852 980,908
Other stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,804) (4,085)
Total liabilities and stockholders' equity . . . . . . . . . . . . . . . . . . . \$3,954,688 \$2,890,380
At December 31, 1997, total assets were \$2,039,271 and total stockholders' equity was
\$930,044.
a. Calculate Gateway, Inc.'s working capital, current ratio, and acid-test ratio at
December 31, 1999, and 1998.
b. Calculate Gateway's ROE for the years ended December 31, 1999, and 1998.
c. Calculate Gateway's ROI, showing margin and turnover, for the years ended
December 31, 1999, and 1998.
d. Evaluate the company's overall liquidity and profitability.
e. Gateway, Inc., did not declare or pay any dividends during fiscal 1999 or
fiscal 1998. What do you suppose is the primary reason for this?
Optional continuation of Case 3.18?trend analysis.
The following historical data were derived from Gateway, Inc.'s consolidated financial
statements. (It should be noted that past data are not necessarily indicative of the results
of future operations.)
1995 1996 1997 1998 1999
Net sales . . . . . . . . . . . . . . \$3,676,328 \$5,035,228 \$6,293,680 \$7,467,925 \$8,645,561
Net income . . . . . . . . . . . . . 172,981 250,679 109,797 346,399 427,944
Total assets . . . . . . . . . . . . . 1,124,011 1,673,411 2,039,271 2,890,380 3,954,688
Long-term obligations,
net of current maturities . . 10,805 7,244 7,240 3,360 2,998
f. Are the trends expressed in the above data generally consistent with each other?
g. In your opinion, which of the above trends would be most meaningful to a
potential investor in common stock of Gateway, Inc.? Which trend would be
least meaningful?
h. What other data (trend or otherwise) would you like to have access to prior
to making an investment in Gateway, Inc.?

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#### Solution Summary

The solution examines levels of measurements.

\$2.19

## Research Method Psychology

4. A________ is a subset of the _________
A. population; sample
B. population; random sample
C. sample; population
D. none of the above

5. The first step in the research process is to
A. review the literature on your topic
B. develop a research plan
C. Find a problem or question to examine
D. consider the relevant theories

6. "Students who have been given extra credit." This statement best represents a (n)
A. theory
B. hypothesis
C. extraneous variable
D. problem

7. Which of the following components of the research process should be conducted first?
A. conducting the project
B. literature review
C. coming up with the hypothesis
D. analysis of research findings

8. The general plan for selecting participants, assigning participants to experimental conditions, controlling extraneous variables, and gathering data is known as the
A. Hypothesis
B. Theory
C. Research design
D. Literature review

9. Which of the following steps in the research process will often result in doing statistics?
A. Analysis of research findings
B. Decisions in terms of past research and theory
C. Theoretical considerations
D. Literature review

11. ________ refers to those situations where we look for one phenomenon
But find something else.
A. Validity
B. Reliability
C. Testability
D. Serendipity

12. Which of the following is NOT a systematic source of research ideas?
A. Theory
B. Everyday occurrences
C. Classroom lectures
D. Past research

13. Which of the following ways are recommended in your text for obtaining relevant publications?

A. Making photocopies from publications
B. Using interlibrary loan
C. request a reprint from the author
D. all of the above

14. Why was the Tuskegee syphilis project considered unethical?

A. Participants were not told the real purpose of the study
B. There were excessive risks for the participants
C. Participants did not have the right to discontinue participation
D. All of the above

15. The Milgram obedience experiments had ethical problems because

A. Milgram failed to debrief his participants.
B. The project was not conducted by scientifically qualified personnel
C. The participants were under extreme emotional distress
D. The participants did not know they were in a study

16. Which ethical guidelines does deception violate?

A. full debriefing
B. informed consent
C. gaining IRB approval
D. all of the above

17. Which of the following best describes the APA guideline regarding inducements for research participation?

A. It is unethical to pay people to participate in research.
B. Researchers should avoid excessive inducements to participate in research
C. Research participation should be a course requirement for college students in introductory psychology classes.
D. Researchers cannot under any circumstances offer professional services as an inducement for research participation.

19. _________ refers to the extent to which a qualitative research report is accurate and unbiased.
A. Credibility
B. Dependability
C. Confirmability
D. Transferability

20. Dependability in qualitative research is analogous to_________ in quantitative research.
A. external validity
B. internal validity
C. construct validity
D. reliability

21. One strength of the case study method is that
A. researchers can understand the causes of behavior
B. the results exhibit high generalizability
C. the research often leads to ideas for future research
D. all of the above are strengths of the case study method

22. with archival research

A. we can make statements about causality under most circumstances
B. we can make statements about causality when the researcher has exhibited tight control over the variables.
C. we can make statements about causality when the researcher has examined only one variable instead of several.

24. "As the amount of exercising decreases weight increases." This statement represents a ________ correlation.

A. Zero
B. Positive
C. Negative
D. Curvilinear

25. Control refers to

A. directly manipulating an independent variable in a research study.
B. managing unwanted variables that could influence the results of a research project.
C. both (a) and (b)
D. none of the above

28. Why is it important to use operational definitions in research?

A. it allows extraneous variables to be controlled
B. it allows other researchers to replicate the research
C. it is the only way to randomly assign participants to conditions
D. it is allows nuisance variables to be controlled.

29. Why are extraneous variables problematic?

A. the operational definitions of extraneous variables are poor
B. the extraneous variables are purposely manipulated by the researcher
C. extraneous variables are usually measured on a Likert scale
D. the researcher does not know if the results are due to the independent variable or to the extraneous variables.

30. Experimenter expectancies usually result in participants

A. behaving in a manner opposite of experimenter expectations
B. behaving in a manner consistent with experimenter expectations
C. behaving in a natural way
D. not understanding the directions of the experimenter

31. Dickson et al. (2001) did not tell their participants that they were studying racial stereotypes because they were worried about

A. experimenter expectancies
B. demand characteristics
C. ethnocentrism
D. sampling issues

32. Research aimed at determining the universality of research results is known as ________ research

A. correlational
B .experimental
C. archival
D. cross-cultural

33. A culture-specific finding is known as a (n)

A. emic
B. etic
C. response set
D. precedent

34. Joy scored a 98% on her last Research Methods exam. Based on the concept of statistical regression we would predict that her score on the next exam will be

A. 98%
B. a little bit lower than a 98%
C. 70%
D. 58%

35. Jerry is concerned about whether his independent variable is the only possible explanation for the results of his experiment. Jerry is concerned about

A. external validity
B. internal validity
C. reliability
D. convenience sampling

36. ________ statistics summarize numbers and__________ statistics determine whether the results are significant.

A. Descriptive; inferential
B. Inferential; descriptive
C. Measurements; inferential
D. Descriptive; measurement

37. Measures of __________ refer to the typical or representative score.

A. variability
B. central tendency
C. inferential statistics
D. type I errors

40. Why is it important to understand scales of measurement?

A. the scale of measurement for the dependent variable determines the kind of statistical test that can be conducted.
B. scales of measurement are integral for inferential statistics (but not necessarily descriptive statistics)
C. scales of measurement are integral for descriptive statistics (but not necessarily inferential statistics)
D. researchers can only analyze data on the interval and ratio levels of measurement.

41. An experiment in which the experimenter directly manipulates the IV is known as a (n)

A. ex post facto research design
B. participant observation
C. correlational research design
D. true experiment

42. You should use an independent samples t test when

A. you have a two-group design you used matched pairs and your DV is measured on an interval or ratio scale of measurement
B. you have a two-group design you randomly assigned your participants and your DV is measured on a nominal or ordinal scale of measurement
C. you have a three-group design you randomly assigned your participants and your DV is measured on an interval or ratio scale of measurement
D. you have a two-group design you randomly assigned your participants and your DV is measured on an interval or ratio scale of measurement.

43. Suppose you know you would like to conduct a one-IV experiment. What is the second question that you need to answer?

A. how many levels of the IV will I use?
B. will I conduct an experiment or a correlational study?
C. will I conduct a confounded experiment or a true experiment?
D. all of the above

44. A statistical test used to analyze data from an experiment with one independent variable that has three or more groups is known as a

A. two-factor ANOVA
B. t-test
C. one-way ANOVA
D. z-test

47. If participants change over time in an experiment which threat to internal validity is potentially operating?

A. Selection
B. Maturation
C. Instrumentation
D. Diffusion of treatments

48. Why do researchers choose to use quasi-experimental designs?

A. random assignments may not be possible when studying participants from certain groups
B. random assignments may not be possible because of expense or time difficulties
C. random assignment may not be ethical in some situations
D. all of the above

49. Which is better?

A. the survey was conducted in a controlled setting
B. we conducted the survey in a controlled setting

50. Which is correct?

A. the data indicate that Terrence was correct.
B. the data indicates that Terrence was correct.

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