Which of the Following Is Not a Characteristic of a Probability

question 78

Multiple Choice

Which of the following is not a characteristic of a probability density function f(x) ?

• A) f(x) ≥ 0 for all values of x.
• B) f(x) is symmetric around the mean.
• C) The area under f(x) over all values of x equals one.
• D) f(x) becomes zero or approaches zero if x increases to +infinity or decreases to -infinity.

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Definitions:

Replacement Cost

Cost to replace a firm’s assets. Also called reproduction cost.

Economic Income

The sum of a company's net cash flow and the change in present value of a company's cash flows in a given period.

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.