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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The quality of computer disks is measured by sending the disks through a certifier which counts the number of missing pulses.A certain brand of computer disks averages 0.1 missing pulse per disk.Let the random variable X denote the number of missing pulses.
-What is the distribution of X?
Market Yield
The annual income on an investment divided by the market price of the investment, typically expressed as a percentage.
Premium
The amount by which the price of a security exceeds its principal amount or its value at issuance.
Discount
The reduction from the full amount or value of something, especially the price of a financial instrument or merchandise.
Coupon Rate
The annual interest rate paid by a bond as a percentage of the face value, indicating the income investors can expect to receive.
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