One Reason That Economists Make Assumptions When Designing Models Is

question 159

Multiple Choice

One reason that economists make assumptions when designing models is to

• A) exclude variables that do not add predictive power to the model.
• B) make models more like the real world.
• C) make models more complex.
• D) increase endogenous factors.
• E) ensure that all possible factors are included.

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Definitions:

Proposed Expansion

Proposed expansion refers to a plan or suggestion to increase the size, scope, or operations of a business or project.

Information Interview

A conversation in which one seeks insights and information about a job, career field, industry, or company from someone knowledgeable.

Primary Research

Fresh studies conducted exclusively for this particular project.

Representative Sample

A subset of a population that accurately reflects the members of the entire population, used in statistical analysis.