What Can Be Said About the Expected Value and Standard

question 9

Multiple Choice

What can be said about the expected value and standard deviation of an exponential distribution?

• A) The expected value is equal to the standard deviation.
• B) The expected value is equal to the square of the standard deviation.
• C) The expected value is equal to the reciprocal of the standard deviation.
• D) The expected value is equal to the square root of the standard deviation.

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Definitions:

Interest

Money paid regularly at a particular rate for the use of money lent or for delaying the repayment of a debt.

Invested

Funds or resources allocated for the purpose of generating income or profit.

Interest

The amount paid by a borrower to a lender over a period of time for the use of money, expressed as a percentage of the principal.

Months

Units of time in calendars that approximately correspond to the period of the Earth moving in its orbit around the Sun, usually divided into 12 periods in a year.