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Why Is the Probability That a Continuous Random Variable Takes

question 94

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Why is the probability that a continuous random variable takes on any specific value equal to zero?


Definitions:

Present Value

The contemporary value of a forthcoming sum of money or cash flow series, adjusted for a specific rate of return.

Cash Flow Stream

A series of cash inflows and outflows over a period of time, often used in financial analysis and investment decisions.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Present Value

The present worth of a future amount of money or series of cash flows when calculated with a certain rate of return.

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