First Pacific Bank Has Determined That the Mean Checking Account

question 68

True/False

First Pacific Bank has determined that the mean checking account balance for all its customers is currently $743.50. Based on this, it is fair to say that about half the customers have balances exceeding $743.50.

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Definitions:

Disposable Income

Refers to the funds that individuals can spend or save after all income taxes are deducted.

Total Consumption

The aggregate amount of goods and services consumed in an economy, including individual and governmental consumption.

Saving

The portion of income not spent on current expenditures or taxes, often put aside for future use or investment.

Induced Consumption

Consumer spending that varies with income levels; as income rises, consumption increases, and as income falls, consumption decreases.