Inputs to a Quantitative Model

question 43

Multiple Choice

Inputs to a quantitative model

• A)are a trivial part of the problem solving process.
• B)are uncertain for a stochastic model.
• C)are uncontrollable for the decision variables.
• D)must all be deterministic if the problem is to have a solution.

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to cover its interest obligations with its earnings before interest and taxes (EBIT).

Potential Drop

An anticipated decrease in value or performance, often used in the context of stocks or electrical voltage.

Earnings

The profit a company generates during a particular period, often used as a measure of its financial performance.

Effective Rate

The effective rate is the actual interest rate that a borrower pays on a loan or receives on a deposit account, after the compounding of interest is taken into account.