In a Linear Equation Relating Income and Consumption, You Know

question 153

Multiple Choice

In a linear equation relating income and consumption, you know that the intercept is $1,000 and the slope of the line is 4. If income is $20,000, then consumption is

• A) $8,000.
• B) $9,000.
• C) $10,000.
• D) $11,000.

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Definitions:

Fair Coin

A theoretical or ideal coin for which the probability of landing heads or tails is exactly equal, used in probability theory.

Probability

Probability is a measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Random Phenomenon

An event or a process that cannot be predicted with certainty due to the random nature of its outcomes.

Independent

Pertaining to variables or events that are not influenced by other variables in the context of statistical analysis.