An Economic Model

question 62

Multiple Choice

An economic model

• A)omits critical elements
• B)must be presented in mathematical terms
• C)simplifies reality in order to focus on its essential elements
• D)can never be proven wrong if its assumptions are realistic
• E)produces poor predictions if it includes an unrealistic assumption

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Definitions:

Sample Statistic

A numerical measurement describing some characteristic of a sample, such as the mean or variance.

Sample Mean

The mean of a collection of numbers, determined by summing all the numbers in the set and then dividing by the count of the numbers.

Population Mean

The average of a set of characteristics (such as age, weight) of every member of a population.

Consistent Estimator

A statistical property of an estimator indicating that as the sample size grows, the estimator converges in probability to the parameter being estimated.