The Best Definition of a Scientific Theory Is

question 55

Multiple Choice

The best definition of a scientific theory is:

• A) a tentative explanation that fits the data collected and which may explain future observations.
• B) an educated guess, based on observations and previous experience, to explain a phenomenon.
• C) a statement describing a natural phenomena proven to occur invariably whenever certain conditions are met.
• D) an explanation for a given set of observations that is generally accepted within the scientific community, but has not yet been decisively proven.

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Definitions:

Present Value

The value of an expected income stream determined as of the date of valuation.

Overvalued Stocks

Stocks with market prices that are higher than their intrinsic value, often due to speculative demand rather than underlying company fundamentals.

Production Techniques

Methods and processes used in the transformation of inputs into outputs (goods or services).

Efficient Markets Hypothesis

A financial theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher than average returns.