Which of the Following Is True of Propensity Score Matching

question 11

Multiple Choice

Which of the following is true of propensity score matching?

• A)It is a technique that uses random assignment.
• B)It allows individuals in the treatment and the control group to be matched on multiple variables.
• C)It allows researchers to study persons of different ages at only one point in time.
• D)It occurs whenever participants are selected because they score extremely high or low on some variable.

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Definitions:

Effective Annual Rate

The actual return on an investment or the real rate of interest on a loan, taking into account the effect of compounding over a period.

Amortized Loan

An amortized loan is a loan where the principal is paid down over the life of the loan, typically through equal payments.

Present Value

The equivalent value today of cash flows or a sum of money anticipated in the future, using a predetermined return rate.

Annuity

A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.