When functional form choice is used to alleviate an interpolation/extrapolation identification challenge the justification represents what sort of element in our data reasoning framework?
A) Empirically testable conclusion
B) Inductive reasoning
C) Assumption
D) Statistically reasoning

Question

Quizplus · Accepted Answer

The justification for choosing a specific functional form to alleviate an interpolation/extrapolation identification challenge represents an assumption in our data reasoning framework. This is because we are assuming that the chosen functional form will adequately capture the behavior of the data, without fully testing this assumption. While we may have some evidence to support this choice, such as theoretical considerations or previous experience with similar data, it is still an assumption that we are making.

When Functional Form Choice Is Used to Alleviate an Interpolation/extrapolation