When Making Passive Predictions, Which Type of Relationship Must You

question 9

Multiple Choice

When making passive predictions, which type of relationship must you believe continues to hold when you move your estimation sample to your forecasting sample?

• A) The (semi) partial correlations of your dependent and independent variables
• B) The determining function
• C) Random treatment assignment
• D) Selection bias

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Definitions:

NPER Function

A financial function in spreadsheet software that calculates the number of periods for an investment based on constant, periodic payments and a constant interest rate.

Monthly Payment

A specified sum of money to be paid each month, often in the context of loans, subscriptions, or service contracts.

Car Loan

A type of financial loan that specifically funds the purchase of a vehicle, typically with interest over a set period.

Evaluate Formula Button

A tool in software applications, like spreadsheets, that allows users to verify the result of a formula within a cell.