It Is Often Said That Social Science Is Inherently Probabilistic

question 5

Multiple Choice

It is often said that social science is inherently probabilistic.What is meant by that?

• A) social sciences are probably hard to study
• B) the best that can be said of findings is that they are more or less likely to occur, never with certainty
• C) researchers can reduce the probability of findings being wrong to zero
• D) if the independent and dependent variables are truly causal one can be certain of the results

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Definitions:

Fair Value

An estimate of the market value of an asset or liability based on current market conditions and willing buyer and seller dynamics.

Held-to-Maturity Debt Securities

Financial instruments that a firm has the intent and ability to hold until they mature, recorded at amortized cost.

Marketable Securities

Financial instruments that are easily convertible to cash and are subject to minimal price risk.

Amortized Cost

The amount at which a financial asset or liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method.