Consider the Following Cumulative Distribution Function for the Discrete Random

question 8

Multiple Choice

Consider the following cumulative distribution function for the discrete random variable X. What is the probability that X is greater than 2?

• A) 0.14
• B) 0.30
• C) 0.44
• D) 0.56

---

Definitions:

Bond Price Curve

A graphical representation of the relationship between the price of bonds and their respective maturities.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount lent, deposited, or borrowed.

Liquidity Preference Theory

The theory that investors prefer to have their resources in liquid forms, influencing interest rates and financial market behavior.

Yield

The income return on an investment, typically expressed as a percentage, indicating the interest or dividends received.