Which of the following settings constitutes an extrapolation?
A) Using past sales and price information to make a forecast for next year's sales growth.
B) Using past sales and price information to estimate last year's price elasticity of demand.
C) Using 2014 and 2016 data on GDP to estimate GDP in the third quarter of 2015, which is missing.
D) Using a randomized control trial to estimate the causal effect of the use of a cancer treatment on health outcomes.

Question

Quizplus · Accepted Answer

Extrapolation involves making predictions or estimates outside the range of the existing data. Choice A is an example of extrapolation because it uses past sales and price information to make a forecast for the future, which is beyond the range of the existing data.

Which of the Following Settings Constitutes an Extrapolation