Which of the Following Would Be a Reason for Preferring

question 8

Multiple Choice

Which of the following would be a reason for preferring $100 now rather than $100 in one year's time?

• A)Risk.
• B)Interest lost.
• C)The effects of inflation.
• D)All of the above.

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Definitions:

Uniform Probability Distribution

A continuous probability distribution for which the probability that the random variable will assume a value in any interval is the same for each interval of equal length.

Continuous Random Variable

A Continuous Random Variable is a variable that can take an infinite number of values within a given range.

Probability Density Function

A function that describes the relative likelihood for a continuous random variable to occur at a point in the observation space.

Continuous Random Variable

A variable that can take an infinite number of real values within a specific range.