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How Are Financial Planning Models Constructed

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How are financial planning models constructed?


Definitions:

Time 1

Refers to the initial point or first measurement time in a longitudinal study or time-series analysis.

Observed Score

The score that is recorded or observed. See True Score.

Error Score

The difference between observed values and the values predicted by a model or measure, indicating measurement error or variance.

True Score

The score that, if it could be observed, would reflect the actual ability or behavior being measured. See Observed score.

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