Refer to the Information Provided in Table 36

question 22

Multiple Choice

Refer to the information provided in Table 36.2 below to answer the question(s) that follow.
Table 36.2
The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y
-Refer to Table 36.2. The error for point C is equal to

• A) -1.
• B) 0.
• C) +1.
• D) +2.

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Definitions:

Maximin Strategy

A decision rule used in situations of uncertainty to maximize the minimum gain that can be secured.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.

Dominant Strategy

In game theory, a strategy that is best no matter what the opposition does.

Players

In an economic context, players refer to individuals or entities actively participating in a market or economic model.