A Structural Break Occurs When We See

question 6

Multiple Choice

A structural break occurs when we see

• A)an unexpected shift in time-series data.
• B)a number of outliers in cross-section data.
• C)a general upward trend over time in time-series data.
• D)an independent variable is correlated with the dependent variable but there is no theoretical justification on for the relationship.

---

Definitions:

With Scienter

Acting with knowledge, especially with regard to the wrongful nature of one's actions.

Burden of Proof

The obligation to present evidence to support one's claim or defense in a legal dispute, determining which party must prove the truth of their assertions to achieve a favorable outcome.

Due Diligence Meeting

A meeting conducted to carefully review and investigate a potential investment, business deal, or partnership to ensure all facts are known before proceeding.

Misstatements

False or inaccurate statements or entries, often referring to errors or inaccuracies in financial documents or reporting.