The Weighted Average of the Possible Values That a Random

question 107

Multiple Choice

The weighted average of the possible values that a random variable X can assume,where the weights are the probabilities of occurrence of those values,is referred to as the:

• A)variance.
• B)standard deviation.
• C)expected value.
• D)None of these choices.

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Definitions:

TIE Ratio

The Times Interest Earned (TIE) ratio is a financial metric used to measure a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the net income and the revenue of a company.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total liabilities divided by total assets.

ROE

Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how well the company uses investments to generate earnings growth.