Which of the Following Is a Drawback of Longitudinal Studies

question 8

Multiple Choice

Which of the following is a drawback of longitudinal studies?

• A)They are subject to cohort effects.
• B)They cannot be used to discuss causality.
• C)Participants may drop out of the study over time.
• D)They have limited generalizability.

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Definitions:

Capital Budgeting

The process by which investors or company management evaluate and select long-term investments that are likely to yield positive returns.

Long-Term Effects

The lasting outcomes or impacts that result from a specific action or event, considered over an extended period of time.

Short-Duration

Describes investments or financial instruments that have a short time until maturity, typically less than one year.

Net Present Value (NPV)

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment or project.