Why Is a Scientific Approach Preferable to Reliance on Folk

question 21

Multiple Choice

Why is a scientific approach preferable to reliance on folk wisdom and common sense?

• A) Common sense approaches focus on the situation and not on personality.
• B) Nothing useful can be learned from journalists, philosophers, or social critics.
• C) Science has tested and debunked most folk wisdom.
• D) Folk wisdom and common sense are filled with contradictions.

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Definitions:

Projected Benefit Obligation

An estimation of the present value of a retirement plan's liabilities owed to employees, based on projected salary increases.

Defined Benefit Pension Plan

A pension plan where an employer promises a specific payout upon retirement, based on factors like salary history and employment duration.

Pension Expense

The cost recognized by an employer for providing retirement benefits to employees over the current accounting period.

Expected Return

The predicted average of the probabilities of various returns an investment can generate, reflecting the anticipated earnings or loss.