Which of the Following Are Potential Problems with Time Series

question 27

Multiple Choice

Which of the following are potential problems with time series analysis?

• A) Time series analysis cannot effectively establish causation.
• B) Time series analysis trials can be very expensive.
• C) Time series analysis can cause ethical problems.
• D) When there is a slow-moving trend in one variable,it is very difficult to infer its causal effects on another variable.

---

Definitions:

Original Cost

The initial amount of money spent to acquire an asset, before depreciation or amortization is taken into account.

Required Rate Of Return

The minimum percentage return an investor expects to receive from an investment due to its risk level.

Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and efficiency.