If Z Represents the Sum of Two Discrete Random Variables

question 47

Multiple Choice

If Z represents the sum of two discrete random variables X and Y,

• A)Z may be a discrete or a continuous random variable.
• B)the probability distribution of Z is obtained by adding the distributions of X and Y.
• C)Z may not satisfy the general requirements for a discrete probability distribution
• D)Z will also be a discrete random variable.
• E)Z will be a continuous random variable.

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Definitions:

Contingent Liability

A potential obligation that may arise in the future, dependent on the occurrence of a specific event.

Financial Statement

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Expense Recognition Principle

An accounting standard that expenses should be recognized in the period in which they are incurred, regardless of when payment is made.

Warranty Costs

Expenses incurred by a company to repair or replace products under warranty.