_________ Is the Idea That the Simplest Explanation for a Phenomenon

question 74

Multiple Choice

_________ is the idea that the simplest explanation for a phenomenon is usually the correct one.

• A) Newton's hypothesis
• B) Occam's razor
• C) Aristotle's test
• D) Einstein's excuse
• E) The Copernican principle

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Definitions:

Risk Averse

The tendency to prefer certainty over risk, where an individual opts for the investment with the least potential for financial loss.

NPV

A financial metric that calculates the total value of a project or investment by discounting future cash flows back to their present value and subtracting initial investment cost.

Scenario Analysis

A business planning technique in which the implications of variations in planning assumptions are explored. Also known as “what-if-ing.”

Abandonment Option

A financial decision allowing companies to cease a project or investment to avoid further losses.