Determine Whether the Following Is a Probability Distribution

question 151

Essay

Determine whether the following is a probability distribution. If not, identify the requirement that is not satisfied.
- $$\begin{array} { c | c } \mathrm { x } & \mathrm { P } ( \mathrm { x } ) \\\hline 0 & 0.246 \\1 & 0.148 \\2 & 0.213 \\3 & 0.167 \\4 & 0.247 \\5 & 0.142\end{array}$$

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Definitions:

Net Income

The amount of profit left after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenues.

Additional Investment

Funds invested into a business by its owners or shareholders over and above the initial investment.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing the financial performance of the business.

Statement Of Owner's Equity

A financial document showing changes in the equity of a company over a certain period due to various business activities, such as earnings and withdrawals.