Which of the Following Sequences Best Describes the Five Necessary

Multiple Choice

Which of the following sequences best describes the five necessary steps to develop an economic model in the correct order?

A) (1) : Identify the endogenous variables;(2) : identify the exogenous variables;(3) : develop a model;(4) : compare the model with the data;(5) : conduct prediction and policy analysis.
B) (1) : Develop a model;(2) : identify the exogenous variables;(3) : identify the endogenous variables;(4) : compare the model with the data;(5) : conduct prediction and policy analysis.
C) (1) : Conduct prediction and policy analysis;(2) : develop a model;(3) : identify the endogenous variables;(4) : identify the exogenous variables;(5) : compare the model with the data.
D) (1) : Conduct prediction and policy analysis;(2) : compare the model with the data;(3) :identify the endogenous variables;(4) : identify the exogenous variables;(5) : develop a model.
E) none of the above