A model is based on an assumption that an additional year of education increases a student's future wage by 20 percent.
-Refer to the scenario above.Which of the followings statements is true of the model?
A) The predictions of this model can be verified empirically.
B) The predictions of this model can only be applied for a limited number of years of additional education.
C) According to the model, 2 additional years of education will increase an individual's future wages 1.20 times.
D) According to the model, 2 additional years of education will increase an individual's future wages 2.98 times.

Question

Quizplus · Accepted Answer

The model's assumption that an additional year of education increases a student's future wage by 20 percent is a quantifiable claim that can be tested against real-world data, making its predictions empirically verifiable.

A Model Is Based on an Assumption That an Additional