Which of the Following Is Not an Example of Using

question 18

Multiple Choice

Which of the following is not an example of using the relative-frequency interpretation of probability?

• A)Buying a lottery ticket every week and observing whether it is a winner.
• B)Testing individuals in a population and observing whether they carry a gene for a certain disease.
• C)Being a member of a jury and deciding that the chance of the defendant being innocent is very small.
• D)All of the above are examples of using the relative-frequency interpretation.

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Definitions:

National Saving

The total amount of savings in a country, which is comprised of both private savings by households and the savings of the government, representing the difference between a nation’s income and consumption.

Open Economy

An economy that allows for trading and financial transactions with other countries.

Investment

Refers to the purchase of goods that are not consumed today but are used in the future to create wealth, such as purchasing machinery for a factory.

Net Capital Outflow

The difference between domestic residents’ investments abroad and foreigners’ investments in the domestic economy.