The Classical Approach Describes a Probability

question 30

Multiple Choice

The classical approach describes a probability:

• A) in terms of the proportion of times an event is observed to occur in a very large number of trials.
• B) in terms of the degree to which one happens to believe that an event will happen.
• C) in terms of the proportion of times that an event can be theoretically expected to occur.
• D) is dependent on the law of large numbers.
• E) describes an event for which all outcomes are equally likely.

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Definitions:

Savings

The portion of income that is not spent on consumption but set aside for future use, often in a bank account or investment vehicle.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of the economy alongside investment, government spending, and net exports.

Savings

The portion of income not spent on consumption of goods and services but kept aside, usually in deposit accounts or investments.

Disposable Income

The fiscal capacity for households to commit to spending and saving following income taxation.