The Probability Density Function F(x) of a Random Variable X

question 4

Multiple Choice

The probability density function f(x) of a random variable X that is normally distributed is completely determined once the:

• A)mean and median of X are specified.
• B)median and mode of X are specified.
• C)mean and mode of X are specified.
• D)mean and variance of X are specified.

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Rationing Function

The process through which prices distribute scarce goods and services among individuals who demand them, effectively limiting the quantity that consumers can purchase.

Incentive Function

The aspect of economic policy or mechanism designed to motivate individuals or entities to act in a certain way by offering rewards.

Labor's Share

The portion of national income or the total output of the economy that is allocated to workers in the form of wages and salaries.