A Continuous Probability Distribution Would

question 37

Multiple Choice

A continuous probability distribution would:

• A) if symmetrically shaped about its mean or expected value, be called a normal distribution.
• B) be represented by a line rather than a bar graph.
• C) if we added up all of the probability values associated with its outcomes, yield a value of one for their cumulative probability and have a 100 percent probability that one of the outcomes will occur.
• D) contain information on the probability values associated with a wide range of possible payoffs.
• E) all of the above.

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Definitions:

Money Multiplier

A factor that quantifies the amount of money the banking system generates with each unit of reserves.

Bonds

Financial securities that represent loans made by investors to issuers, typically governments or corporations, which promise to pay back the principal along with interest on specific dates.

Money Supply

The money supply refers to the total amount of monetary assets available in an economy at a specific time, including cash and deposits.

Leverage Ratio

A leverage ratio is a financial metric used to measure the level of debt used by a business in relation to its equity or assets, indicating the financial health and risk of the entity.