The Probability of a Continuous Random Variable Taking on a Value

question 97

True/False

The probability of a continuous random variable taking on a value within some interval is the area under the graph of the probability density function.

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Definitions:

MPC

Marginal Propensity to Consume refers to the fraction of any additional income that is used for consumption purposes.

Consumption

The act of households utilizing goods and services.

Disposable Income

The sum of funds that families can allocate to expenditure and savings once they've paid their income taxes.

MPC

The marginal propensity to consume, which represents the proportion of an increase in income that is spent on consumption rather than being saved.