A Weighted Average of the Value of a Random Variable

question 58

Multiple Choice

A weighted average of the value of a random variable, where the probability function provides weights, is known as _____.

• A) a probability function
• B) a random variable
• C) the expected value
• D) None of the answers is correct.

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Definitions:

Earnings per Share

A company's net profit divided by its number of outstanding shares, indicating how much money each share makes in net income.

Annual Dividend

The total amount of dividends paid to shareholders over a year.

Share

A unit of ownership in a company or financial asset that represents a proportionate claim on its assets and earnings.

Partial Excludability

Characteristic of a good whereby it is difficult but not impossible to prevent people from using it, often seen in semi-public goods.