If the Random Variable X Is Exponentially Distributed with Parameter $\lambda$

question 41

Multiple Choice

If the random variable X is exponentially distributed with parameter $\lambda$ = 3,then the probability P(X $\ge$ 2) equals:

• A) 0.3333
• B) 0.5000
• C) 0.6667
• D) 0.0025

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Definitions:

Private Saving

The portion of individuals' or households' income that is not consumed or spent on taxes and is instead saved for future use.

Taxes Fall

A scenario in which the burden of taxes decreases, either through reduced rates or changes in policy that lead to lower tax obligations.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the market price per share by the earnings per share, used to assess a company's relative valuation.

Retained Earnings

Profits that a company keeps after dividends are paid, which are often reinvested into the business for growth or debt repayment.