Consider a Random Variable,X,with Uniform Density Over the Range 0

question 204

Multiple Choice

Consider a random variable,X,with Uniform density over the range 0 to 3.What is P(1.2 < X < 1.8) ?

• A)1.00
• B)0.20
• C)0.60
• D)0.40
• E)0.50

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Definitions:

Coupon Rate

The interest rate stated on a bond or other fixed-income security that the issuer promises to pay the holder until maturity.

Formulation

The process of creating a strategy, plan, or method for dealing with a specific issue or for achieving a specified goal.

Return

The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost.

Zero Coupon

A type of bond that does not pay periodic interest payments but instead is sold at a deep discount from its face value and pays its full face value at maturity.