What Is True About an Economic Model

question 122

Multiple Choice

What is true about an economic model?

• A)It is built on a series of assumptions.
• B)It establishes cause and effect between variables.
• C)It can make predictions that can be tested with empirical data.
• D)It could also be called an economic theory.
• E)It is built on a series of assumptions,it establishes cause and effect between variables,it can make predictions that can be tested with empirical data,and it could also be called an economic theory.

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Definitions:

Type II Error

The error made in statistical testing when a false null hypothesis is not rejected, indicating a missed opportunity to find a true effect.

Sample Size

The number of observations or data points collected in a sample, which is a subset of the larger population.

Process Mean

The average value of a set of measurements from a process, indicating its central tendency or typical performance.

Average Run Length

In statistical quality control, it is the average number of samples that must be taken before a change in the status of a process is detected.