Which of the Following Equations Is INCORRECT

question 90

Multiple Choice

Which of the following equations is INCORRECT?

• A)Var(
• R)=
• B)SD(
• R)=
• C)Var(
• R)= ^{ΣR PR} × (R - E[R])2
• D)E[R] = ^{ΣR PR} × R

---

Definitions:

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing the combination of two goods that give the same level of satisfaction to the consumer.

Marginal Utility

The change in total utility a person receives from consuming an additional unit of a good or service.

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, based on the level of satisfaction or utility derived.

Optimal Utility Rule

A principle in consumer theory stating that consumers allocate their income in a way that maximizes their total utility, given their budget constraint.