Which of the Following Correctly Explains a Probabilistic Model

question 11

Multiple Choice

Which of the following correctly explains a probabilistic model?

• A) A probabilistic model gives a description of real world economic phenomena.
• B) A probabilistic model shows the possibility of a range of outcomes.
• C) A probabilistic model examines the changes in economic variables over a period of time.
• D) A probabilistic model is based on value judgments.
• E) A probabilistic model is used to explain long-run economic phenomena

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Definitions:

Account Balances

The amounts of money in a company's financial accounts at a specific point in time.

Unadjusted Trial Balance

A list of all accounts and their balances in a company's ledger before any adjusting entries are made.

Ledger

A book or other collection of financial accounts of a particular type, where transactions are recorded.

Account Balances

The total amount of money in a financial account, determined by adding all credits and subtracting all debits.