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Which of the Following Is a Function Performed by Market

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Which of the following is a function performed by market prices?


Definitions:

Exponential Distribution

A continuous probability distribution used to model the time between events in a process with a constant rate.

Probability

The mathematical analysis of events governed by chance, quantifying how likely they are to happen.

Exponential Distribution

A probability distribution used to model the time between events in a Poisson process, characterized by a constant rate parameter.

Probability

Probability is a measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

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