Suppose That the Random Variable X Has an Exponential Distribution

question 69

Multiple Choice

Suppose that the random variable x has an exponential distribution with θ = 1.5. Find the mean and standard deviation of x.

• A) μ = 1.5; σ = 1.5
• B) μ = 0; σ = 1
• C)μ = 1.5; σ = 1
• D)μ = 0; σ = 1.5

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Definitions:

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Capital Stock

The original amount the owners paid into the company plus any additional paid-in capital to purchase stock in the company.

Long-Term Debt

An obligation for debt that is due to be repaid in more than 12 months.

5-Year Bank Loan

A financial agreement where a bank lends money to a borrower, to be repaid with interest over a five-year period.