Absolute value: subtract within the bars and take the absolute value of the answer. Either positive or negative within the bars will be positive outside the bars. It is the exact number of position changes on the number line between the numbers.
EXAMPLES
|7-3|= |4|= 4
|-7+3|= |-4|= 4
|10-4|= |6|= 6
|-12 + 4|= |-8|= 8
ANSWER: Ethan is correct because the absolute value bars are grouping symbols so first you must subtract 7-3=4, and |4|=4 (bottom choice).
Hope this helps! :)