Which of the Following Is True About the Sampling Distribution

question 155

Multiple Choice

Which of the following is true about the sampling distribution of the sample mean?

• A)Its mean is always equal to
• B)Its standard error is always equal to the population standard deviation σ.
• C)Its shape is exactly normal if n is large enough.
• D)None of these choices.

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Definitions:

Disposable Income

Income left for households to direct into savings and spending after deductions of income taxes.

APC

APC, or Average Propensity to Consume, is the ratio of total consumption to total disposable income, indicating how much income is spent.

Induced Consumption

The portion of consumer spending that changes in response to changes in disposable income.

Disposable Income

The sum of funds that individuals or families can allocate towards savings or expenditure once they've deducted income taxes.