A Random Variable X Is Standardized by Subtracting the Mean

question 156

True/False

A random variable X is standardized by subtracting the mean and dividing by the variance.

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Definitions:

APC

The Average Propensity to Consume, which measures the fraction of income that households spend on goods and services rather than saving.

Disposable Income

The spendable income of households after income tax deductions tailored for saving and spending.

Disposable Income

The financial resources meant for household spending and saving after settling income taxes.

Saving

The act of setting aside a portion of current income for future use, either by holding the funds in cash or investing them.