The Probability Model for Random Variable X Is Specified As

question 21

Multiple Choice

The probability model for random variable X is specified as: P(X) = X/6 for X = 1, 2 or 3
The expected value of X is

• A) 2.00
• B) 0.50
• C) 0.333
• D) 2.333
• E) 0.167

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Definitions:

Capital Surplus

Excess amount received by a company over the par value of its stock, representing additional paid-in capital.

Earned Surplus

The portion of a company's net income that is retained for reinvestment, rather than being distributed as dividends to shareholders.

MBCA

Model Business Corporation Act, a recommendation for state law on corporations, providing a template for corporate governance and operations.

Net Asset Test

A financial assessment to determine a company's or individual's net worth by subtracting total liabilities from total assets.