The Average Propensity to Consume Is Measured By

question 5

Multiple Choice

The average propensity to consume is measured by:

• A) Consumption / income
• B) Consumption / sales
• C) Change in consumption / change in income
• D) Change in consumption / total income

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Definitions:

Confidence Interval

A scope of values, extracted from sample studies, that is likely to enclose the value of an unknown characteristic of the population.

T-Distribution

A statistical distribution used when estimating population parameters of a normally distributed population in situations where the sample size is small and the population standard deviation is unknown.

Degrees of Freedom

The count of separate values or amounts assignable to a statistical distribution.

Right Skewed

Describes a distribution where the tail is longer on the right side of the data's peak, indicating a greater number of high-value outliers.