Which of the Following Equations Is Correct

question 18

Multiple Choice

Which of the following equations is correct?

• A) Saving = Disposable income + Consumption
• B) Saving = Disposable income x Consumption
• C) Disposable income = Consumption - Saving
• D) Saving = Disposable income - Consumption

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Definitions:

Total Area

In statistical terms, often refers to the entirety of the area under a probability distribution curve, which equals 1 or 100%.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about a population.

Nonnormal Population

A population distribution that does not fit the normal (bell-shaped) distribution pattern, often having skewness or kurtosis.

Approximately Normally Distributed

Describing data that roughly follows a bell curve, with most values clustering around a central mean.