Why Is a Random Error Term Included in an Econometric

Multiple Choice

Why is a random error term included in an econometric model?

A) because many economic models have not been well developed yet and need to allow for inaccuracies
B) because some people are irrational
C) because there is intrinsic uncertainty in any economic activity due to individual decision making
D) because most estimating techniques are not well suited to work with a deterministic model.