In the Event That There Is an Acceptable Model of the Data-Generating

question 34

Multiple Choice

In the event that there is an acceptable model of the data-generating process within which the treatment effect is identified using samples from the population, but the 95% confidence level of the treatment effect contains both large negative and large positive values, what might be an appropriate step for the analyst to do?

• A) Collect more data.
• B) Re-run the experiment.
• C) Consider alternative data populations (e.g., additional variables) before attempting to estimate the effect.
• D) Run a probit/logit model.

---

Definitions:

Year-End

The conclusion of a fiscal year when a company completes its accounting period, often used to finalize financial reports and assess annual performance.

Present Value

The present worth of a future amount of money or series of cash inflows, calculated using a given rate of return.

Annual Net Cash Flows

Annual net cash flows represent the amount of cash a company generates or loses within a year from its operating, investing, and financing activities.

Required Return

The minimum amount of profit or gain an investor expects to achieve from an investment to make it worthwhile.