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

Question

Quizplus · Accepted Answer

A probabilistic model shows the likelihood or possibility of a range of outcomes based on the probability distribution of the input variables.

Which of the Following Correctly Explains a Probabilistic Model