From a Portion of a Probability Distribution,you Read That P(demand

question 1

Multiple Choice

From a portion of a probability distribution,you read that P(demand = 0) is 0.05,P(demand = 1) is 0.10,and P(demand = 2) is 0.20.What are the two-digit random number intervals for this distribution beginning with 01?

• A)01 through 05,01 through 10,and 01 through 20
• B)00 through 04,05 through 14,and 15 through 34
• C)01 through 05,06 through 15,and 16 through 35
• D)00 through 04,00 through 09,and 00 through 19
• E)01 through 06,07 through 16,and 17 through 36

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Definitions:

Real Interest Rates

Real interest rates are the interest rates adjusted for the effects of inflation, reflecting the true cost of borrowing and the true yield on savings.

International Fisher Effect

A theory that describes the relationship between interest rates and currency exchange rates, asserting that differences in interest rates between two countries will result in an equal change in exchange rates.

Interest Rate Parity

A theory explaining the relationship between interest rates and the exchange rate between two currencies.

Gilts

Government bonds issued by the United Kingdom, considered low-risk investments.