Calculate the Expected Value of X for the Given Probability $$\begin{array} { c c c c c } x & 1 & 2 & 3 & 4 \\P ( X = x ) & 0.6 & 0.1 & 0.1 & 0.2\end{array}$$

question 23

Multiple Choice

Calculate the expected value of X for the given probability distribution. $$\begin{array} { c c c c c } x & 1 & 2 & 3 & 4 \\P ( X = x ) & 0.6 & 0.1 & 0.1 & 0.2\end{array}$$

• A) \(E ( X ) = 1.6\)
• B) \(E ( X ) = 2.1\)
• C) \(E ( X ) = 2.4\)
• D) \(E ( X ) = 1.9\)
• E) \(E ( X ) = 2.3\)

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Definitions:

Journal Entries

Journal entries are records of financial transactions in accounting, documented in chronological order, indicating accounts affected, amounts, and a brief description of the transaction.

Forward Rate

An agreed-upon price for a currency or asset to be exchanged at a future date, used for hedging or speculation.

Forward Contract

A financial derivative that represents a customized contract between two parties to buy or sell an asset at a specified price on a future date.

Carrying Value

The book value of assets and liabilities, reflecting their recorded cost minus any depreciation, amortization, or impairment charges.