Using the Following Uniform Density Curve, Answer the Question

question 16

Multiple Choice

Using the following uniform density curve, answer the question.

What is the probability that the random variable has a value greater than 5 ?

• A) 0.325
• B) 0.250
• C) 0.375
• D) 0.500

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares, effectively reducing the price of an individual share for investors while keeping the overall market capitalization the same.

Value-Weighted Index

An stock index in which each component is weighted according to its market value.

Price-Weighted Index

A stock market index in which each company's stock is included in proportion to its share price, meaning higher-priced stocks have more influence on the index's performance.

Stocks

Financial instruments that represent an ownership share in a corporation, entitling the holder to a proportion of the company's assets and profits, usually traded on stock exchanges.