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The unemployment rate is best described as the ratio of unemployed to:

A、 labor force.

B 、labor force minus frictionally unemployed.

C、 total population of people who are of working age.

【Answer 】A

【analysis】

A is correct. The unemployment rate is the ratio of unemployed to labor force.

B is incorrect because unemployment rate includes all the labor force.

C is incorrect because unemployment rate is based on the labor force and the working age. The labor force is defined as the number of people who either have a job or are actively looking for a job


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The conditional expected value of a random variable is best described as the:

A .expected value of a random variable given an event or scenario.

B .probability-weighted average of the possible outcomes of the random variable.

C. weighted average of the probabilities of an event given all possible scenarios.

【Answer 】A

【analysis】

A is correct. The conditional expected value of a random variable is the expected value of a random variable given an event or scenario.

B is incorrect because an expected value (not a conditional expected value) is defined as the probability-weighted average of the possible outcomes of the random variable.

C is incorrect because an expected value is not a probability. This answer defines the total probability rule, which is the weighted average of the probabilities of an event given all possible scenarios

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