Economic Theories Are

question 87

Multiple Choice

Economic theories are

• A)useful because they are as exact as theories in the physical sciences
• B)useless because they are based on abstractions
• C)useful because they allow us to make predictions
• D)too complex to understand because they include all of reality
• E)useful in predicting events only if their assumptions are realistic

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Definitions:

Discrete Random Variables

Variables in statistical analysis that can take on a countable number of distinct values, often representing occurrences.

Continuous Random Variables

Variables that can take on an infinite number of values within a given range.

Probability Density

A function that describes the relative likelihood for a random variable to take on a given value.

Probability Density Function

A mathematical expression that defines the probability of a continuous random variable assuming a specific value.