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A Probability Distribution Is a Statistical Function Which Describes All

question 18

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A probability distribution is a statistical function which describes all possible values and likelihoods that a variable can take.


Definitions:

Effective Rate

The actual interest rate on an investment or loan, taking into account the effects of compounding.

Insurance Settlement

The amount paid by an insurer to a policyholder or claimant as resolution for a filed claim.

Compounded Nominal Annual Rate

The rate of interest per year without taking into account the compounding within that year, often differing from the effective annual rate.

Effective Rate

The actual interest rate an individual earns or pays on an investment or loan, taking into account the effect of compounding.

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