The Expected Value of a Discrete Random Variable

question 80

Multiple Choice

The expected value of a discrete random variable

• A) is the most likely or highest probability value for the random variable.
• B) will always be one of the values x can take on, although it may not be the highest probability value for the random variable.
• C) is the average value for the random variable over many repeats of the experiment.
• D) is the value it is expected to assume in the next trial.

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Definitions:

Tradable Emissions Permits

A market-based system that allows entities to buy or sell government-granted allotments of pollutants, promoting cost-effective pollution reduction.

Pollution Costs

entail the negative externalities or financial burdens on society resulting from environmental pollution.

Nondegradable Pollutants

Substances that do not break down naturally in the environment and can accumulate and cause harm over time.

Emissions Tax

A tax imposed on companies for the amount of greenhouse gases they emit into the atmosphere.