Which criterion is NOT useful when evaluating a theory?
A) It has predictive power.
B) It fits one's pre-conceived bias.
C) It offers a model consistent with investor behavior.
D) It explains actual data well.

Question

Quizplus · Accepted Answer

"Fits one's pre-conceived bias" is not a useful criterion when evaluating a theory because it can lead to confirmation bias and the acceptance of ideas that are not supported by evidence. The other criteria (predictive power, consistency with investor behavior, and ability to explain actual data) are all important in determining the validity and usefulness of a theory.

Which Criterion Is NOT Useful When Evaluating a Theory