The Basic Purpose of Economic Models Is to

question 37

Multiple Choice

The basic purpose of economic models is to

• A)construct simplifying assumptions about the real world
• B)explain reality in all its complexity
• C)collect empirical data to support the facts
• D)construct situations where controlled experiments can be carried out
• E)provide explanations for, and predictions of, economic events

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Definitions:

Confidence Interval

A range of values derived from sample data that likely contains the true value of an unknown population parameter.

Sample Size

The number of observations or units included in a sample, which represents a portion of the population being studied.

Variable

A variable is an attribute that can take on various values among different individuals or across different times or places.

Confidence Level

The probability that a parameter will fall between two values for a specified proportion of times.