Which Potential Problem Can Occur When the Rational Method Is

question 43

Multiple Choice

Which potential problem can occur when the rational method is used?

• A) People are not necessarily very good at logical reasoning.
• B) It requires hands-on experience, so it can be messy or even dangerous.
• C) There is no mechanism for testing the accuracy of the claims.
• D) This method requires lengthy and difficult testing.

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Definitions:

Index Funds

A type of mutual fund or exchange-traded fund designed to follow or track the components of a market index, such as the S&P 500.

PHStat

A software add-in for Microsoft Excel that assists in statistical analyses.

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared deviations from the mean of the set.

Index Funds

Mutual funds or exchange-traded funds (ETFs) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.