The Third Rule for Evaluating Inductive Generalizations Is to Consider

question 28

Multiple Choice

The third rule for evaluating inductive generalizations is to consider their initial plausibility.How is this rule used to evaluate the strength of arguments by analogy?

• A)We consider the plausibility of the conclusion of the argument by analogy.
• B)We consider the plausibility of the conclusion of the inductive step.
• C)We consider whether or not the deductive step is valid.
• D)We consider whether or not the inductive step is valid.
• E)It cannot be used since inductive generalization has no relevance to arguments by analogy.

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Definitions:

Incremental Cash Flows

The additional cash inflows or outflows expected from taking on a new project or investment, essential for assessing its potential profitability.

Evaluation

The process of determining the significance, worth, or condition of something, typically through careful appraisal and study.

Depreciation Tax Shield

The tax savings achieved by a company from the allowance for depreciation expenses, reducing taxable income.

Depreciable Basis

The initial cost of an asset that can be depreciated over time for tax purposes, minus any salvage value.