When We Evaluate Explanations, We Typically Ask Two Questions

question 12

Multiple Choice

When we evaluate explanations, we typically ask two questions.The second is:

• A)How many explananda could possibly follow from the hypothesis?
• B)Is the hypothesis true?
• C)Is the explananda true?
• D)Would most people be likely to believe the explanation?
• E)Is the explanandum adequate?

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Definitions:

Forecast

A prediction or estimate of future events or trends, especially related to economic or weather conditions.

Last Year

A term that refers to the immediate past calendar year or the most recent complete fiscal year.

Well-Diversified Portfolio

A portfolio containing a wide variety of investments which aims to reduce risk by spreading investments across different assets.

Single Index Model

A simplified model to estimate the return of a stock based on the performance of a single market index and the stock's sensitivity to that index.