A Function or Rule That Assigns a Numerical Value to Each

question 57

Multiple Choice

A function or rule that assigns a numerical value to each simple event of an experiment is called:

• A)a sample space.
• B)a probability distribution.
• C)a random variable.
• D)None of these choices.

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Definitions:

Straight Life Insurance

Insurance that requires the payment of premiums throughout the life of the insured and pays the beneficiary the face value of the policy upon the insured’s death.

Face Value

The nominal or original value printed on a security or financial instrument, such as a bond or stock certificate.

Lapse Policy

A situation where an insurance policy becomes inactive because premiums have not been paid.