Exhibit 6-3 Consider the Continuous Random Variable X, Which Has a Uniform

question 40

Multiple Choice

Exhibit 6-3
Consider the continuous random variable X, which has a uniform distribution over the interval from 20 to 28.
-Refer to Exhibit 6-3. The probability density function has what value in the interval between 20 and 28?

• A)0
• B)0.050
• C)0.125
• D)1.000

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Definitions:

Discount Rate

In DCF evaluations, the applied rate to ascertain the contemporary value of expected future cash inflows.

Net Present Value

The difference in now-value of cash inflow versus outflow throughout a definite timeline.

Project Life

The duration from the initiation to the conclusion of a project, encompassing all phases including planning, execution, and closure.

Equipment Sale

The process of disposing of company machinery and equipment, often recognized as a business transaction.