A Negotiable Instrument

question 59

Multiple Choice

A negotiable instrument

• A)need not be in writing.
• B)must be fair to all parties.
• C)must state a fixed amount of money.
• D)need not be signed by the maker or drawer.

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Definitions:

Marginal Probability

The probability of an event occurring, regardless of the outcomes of other variables; it is calculated by summing the probabilities of the event across all values of the other variables.

E(X + Y)

The expected value of the sum of two random variables, equal to the sum of their individual expected values.

Covariance

A measure that indicates the extent to which two variables change together, but does not indicate the strength of their relationship.

Independent

Not influenced by or dependent on another variable; in statistics, it often means that the occurrence of one event does not affect the probability of another event.