In an Economic Model, Assumptions

question 221

Multiple Choice

In an economic model, assumptions

• A) must be applicable to all real-world situations.
• B) must be eliminated before being used to make sure the model is realistic.
• C) are not important in determining the usefulness of the model.
• D) define the set of circumstances in which the model is most likely to be applicable in the real world.

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Definitions:

Between

Pertaining to comparisons or analyses conducted on distinct and separate groups or categories.

Z-scores

A statistical measure that describes a value's relationship to the mean of a group of values, represented in terms of standard deviations from the mean.

Standard Normal Distribution

A probability distribution with a mean of zero and a standard deviation of one, represented by the bell curve.

Z-scores

Standard scores that indicate how many standard deviations an element is from the mean, used to compare data points across different scales or distributions.