Continuous Random Variables That Can Assume Values at All Points

question 178

Multiple Choice

Continuous random variables that can assume values at all points on an interval of values, with no breaks between possible values, are quite common. Examples include:

• A) profit per dollar of sales
• B) cost per credit taken by graduate students
• C) the average time it takes to assemble a car, or write a test
• D) height
• E) all of these

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Definitions:

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, influencing the risk level of the security.

Bretton Woods Agreement

An international financial system established in 1944, creating fixed exchange rates, the International Monetary Fund (IMF), and the World Bank to promote global economic stability.

Price Volatility

The degree to which the price of an asset, security, or commodity fluctuates over time.