The Probability Distribution of the Error Variable $\varepsilon$ Is Normal,with Mean E

question 183

True/False

The probability distribution of the error variable $\varepsilon$ is normal,with mean E( $\varepsilon$ )= 0,and standard deviation $\sigma$ _{$\varepsilon$} =1.

---

Definitions:

Oligopolistic Producers

Companies within an industry where a small number of firms hold a large market share, leading to limited competition.

Homogeneous Product

Goods that are perfectly identical in quality, style, and substance, making them indistinguishable from products produced by competing companies.

Kinked Demand Curve Model

A model in oligopoly markets suggesting that firms may not change their prices because an increase could be ignored by rivals, while a decrease might be matched.

Price Stability

A situation in an economy where prices in general do not change significantly over time, minimizing uncertainty and conducive to economic growth.