Annuity returns are generally similar to returns from investing the money in an
interest bearing accounts. F（没有利息）
41. In casual language, the terms theory and model are often used interchangeably. From a technical point of view there is an important difference. Theories provide a general
framework, but because of the generality of the specification, a theory cannot be shown to be useful or useless until it is fully specified in the form of a model. A model, on the other hand, needs by definition to be formulated within the concepts, along with a set of assumptions about the concepts and their relationships. The appropriateness of a model must then be
evaluated with respect to a particular set of test data. The evaluation may be done by
conducting a suitably designed set of empirical investigations（实证检验）, by rational
inspection of the model assumptions in relation to the test data, or ideally both.
In the strict sense, all models provide incomplete representations of the data to which they to fitted. Therefore the meaningful question is not whether a model is correct or incorrect, but rather whether the model fits the data well enough to be useful in guiding the process.
Statistical evidence and judgment play important roles in answering that question.
It is more meaningful to look at the practical utility （实际效用）of a model than its absolute
veracity（绝对准确性）. T
Most people fail to understand the difference between a theory and a model. C A model can exist in the absence of a theory. F 42. Financial fraud is a crime of growing significantly. In 2003, 8% of reported business-related crimes were fraud, averaging $35000 in losses. By 2005, whilst financial fraud was found to
be the sixth-most frequent crime, it was the third-highest concern amongst business leaders. Researchers found that, globally, internet-based fraud was rising dramatically in 2005. The main reasons for fraud included poor supervision and lack of proper division of duties, inadequate control of access to system, and poor authorization controls. Internal detective
measures uncovered less than half of the cases, with an increasing number of cases being discovered by accident. One third of the cases were committed by managerial-staff, while half were committed by non-managerial staff.
Detective methods were operating very effectively in 2005. F Over half of all cases of fraud in 2005 were discovered by accident. C Business leaders are more concerned about financial fraud than before because of the
growth of the Internet. C