A model is valid if
A)it is based on human behavior.
B)it is new.
C)it has been around for many years.
D)observations can be explained by it.
E)it incorporates asymmetric information.

Question

Quizplus · Accepted Answer

A model is valid if it can explain observations. This means that it accurately represents the real-world phenomenon it is trying to explain. Therefore, choice D is the best answer. The other choices do not necessarily guarantee validity. Choice A may not always be relevant, as some models may be based on animal behavior or other natural phenomena. Choice B is irrelevant, as being new does not necessarily indicate validity. Choice C may actually be a disadvantage if the model is outdated and does not accurately reflect the current state of the phenomenon. Choice E may or may not be relevant, depending on the specific phenomenon being modeled.

A Model Is Valid If