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Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111 Exercise 1
Which of the following is the last step in the model-building process?
A) Collect data and test the model.
B) Develop a model based on simplified assumptions.
C) Identify the problem.
D) Formulate an assumption.
A) Collect data and test the model.
B) Develop a model based on simplified assumptions.
C) Identify the problem.
D) Formulate an assumption.
Explanation
Verified
Verified
Model building process:
Model building process involves three important steps:
First step is the identification of a problem and then formulation of hypothesis in order to develop a model.
The second step refers to selection of variables necessary to develop a model on the identified problem and eliminate other variables based on simple assumptions.
The third and final step includes collection of data on selected variables, hypothesis or model testing, and finally to draw conclusions.
Second step of model building process includes collection of data and model testing. Hence, the correct option is
.
Since option 'b' does not include collection of data and model testing step of the model building process, option 'b' is incorrect.
Since option 'c' does not include collection of data and model testing step of the model building process, option 'c' is incorrect.
Since option 'd' does not include collection of data and model testing step of the model building process, option 'd' is incorrect.
Model building process involves three important steps:
First step is the identification of a problem and then formulation of hypothesis in order to develop a model.
The second step refers to selection of variables necessary to develop a model on the identified problem and eliminate other variables based on simple assumptions.
The third and final step includes collection of data on selected variables, hypothesis or model testing, and finally to draw conclusions.
Second step of model building process includes collection of data and model testing. Hence, the correct option is
.Since option 'b' does not include collection of data and model testing step of the model building process, option 'b' is incorrect.
Since option 'c' does not include collection of data and model testing step of the model building process, option 'c' is incorrect.
Since option 'd' does not include collection of data and model testing step of the model building process, option 'd' is incorrect.
Economics for Today 9th Edition by Irvin Tucker
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