Which of the Following Is Not a Reason Why a Mechanical

question 45

Multiple Choice

Which of the following is not a reason why a mechanical combination of data yield better results than a judgmental combination?

• A)The accuracy of prediction may depend on the proper weighting of predictors.
• B)Data on additional applicants are added to already available data, so more accurate statistical models can be created.
• C)Decision makers relying on judgment can do better than a statistical model only if they are thorough, objective, and systematic in both collecting and combining the information.
• D)Decision makers are more likely to add considerable error if they are allowed to combine judgmentally both subjective data along with objective data.

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Definitions:

Capital/Labor Intensity

A measure of the ratio of capital to labor in the production process, indicating whether an economy or sector relies more on capital investment or labor.

Corporate Profits Tax

A tax imposed by governments on the income earned by companies and corporations.

Labor Supply

The total amount of hours employees are ready and capable of working for a specified rate of pay.

Payroll Tax

A tax imposed on employers or employees, and is typically calculated as a percentage of the salaries that employers pay their staff.