Among the Chief Concerns About the Use of Benefit-Cost Analysis

question 8

Multiple Choice

Among the chief concerns about the use of benefit-cost analysis is that

• A) monetizing the benefits of a policy proposal is difficult
• B) identifying and estimating implicit costs is a major challenge
• C) equity might not be achieved if, for example, costs are distributed unevenly
• D) all of the above
• E) none of the above

---

Definitions:

Coefficient of Correlation

A measure that indicates the extent to which two variables change together. If the value is close to 1 or -1, it indicates a strong relationship between the variables.

Random Sample

A subset of a population selected in such a manner that every individual has an equal chance of being chosen.

Regression Line

A line of best fit through a scatter plot of data points that shows the linear relationship between two variables.

Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.