Refer to the Accompanying National Income Data (In Billions of

question 9

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { Consumption of Fixed Capital } & \$ 25 \\\hline \text { Government Purchases } & 315 \\\hline \text { US imports } & 260 \\\hline \text { Personal Taxes } & 45 \\\hline \text { Transfer Payments } & 247 \\\hline \text { US Exports } & 249 \\\hline \text { Personal Consumption Expenditures } & 475 \\\hline \text { Net Foreign Factor Income } & 5 \\\hline \text { Gross Private Domestic Investment } & 300 \\\hline \text { Taxes on Production and Imports } & 245 \\\hline \text { Undistributed Corporate Profits } & 60 \\\hline \text { Social Security Contributions } & 240 \\\hline \text { Corporate Income Taxes } & 65 \\\hline \text { Statistical Discrepancy } & 40 \\\hline\end{array}$$ Refer to the accompanying national income data (in billions of dollars) . Disposable income is

• A) $611 billion.
• B) $659 billion.
• C) $667 billion.
• D) $686 billion.

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Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

z

A standard score representing the number of standard deviations an observation or datum is above or below the mean of what is being observed or measured.

Standard Normal

An ordinary distribution with a 0 mean and a 1 standard deviation.

Random Variable

A variable with numerical outcomes derived from random occurrences.