Which of These Statements About Extrapolation Is NOT True

question 9

Multiple Choice

Which of these statements about extrapolation is NOT true?

• A) The term is used to estimate a value for the dependent variable when the value used for the independent variable lies outside the observed range
• B) Extrapolation is commonly used to support forecasting or planning for future needs (for example raw materials as production increases)
• C) As extrapolation is taken from within the range of observed values we can be fairly confident of its accuracy
• D) Extrapolation must be undertaken with care, particularly when values get further from the observed range

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Definitions:

Loss

A financial condition where expenses exceed revenues, leading to a negative profit.

Rule of Law

The principle that all individuals, entities, and government are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated.

Confiscated

Property that has been taken away from its owner by a governmental authority as a penalty or for regulatory reasons.

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The potential for financial loss that a company faces when engaging in business transactions, especially in foreign markets.