A Fellow Student Tells You He Is Working with a Discrete

question 54

Essay

A fellow student tells you he is working with a discrete random variable, x, which takes on integer values from 0 to 50 and has a mean of 40 and a variance of 10.
Is x a binomial random variable?
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Explain.
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Definitions:

Aggregate Expenditure

Aggregate expenditure is the total amount of spending in an economy, including consumer spending, investment, government spending, and net exports.

Equilibrium Real GDP

The level of gross domestic product where aggregate supply equals aggregate demand at current prices, adjusted for inflation.

Marginal Propensity

Refers to the ratio of the change in an individual's consumption to the change in their income.

Disposable Income

Money available to households for personal spending and saving after deducting their income taxes.