A Function That Associates a Numerical Value with Each Possible

question 22

Multiple Choice

A function that associates a numerical value with each possible outcome of an uncertain event is called a:

• A) conditional variable
• B) random variable
• C) population variable
• D) sample variable

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Definitions:

RRSP

Registered Retirement Savings Plan, a retirement savings and investing vehicle for employees and the self-employed in Canada that offers tax benefits.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounding at the end of each period; commonly found in retirement accounts and loan repayments.

Ordinary Annuity

A financial product resulting in payments of a fixed amount received or paid at the end of period intervals.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, with this process happening every month.