Is the Function a Probability Density Function on the Interval

question 30

Multiple Choice

Is the function a probability density function on the interval ?

• A) Yes
• B) No, because the integrated probablility is not 1
• C) No, because the function can be negative in the range

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Definitions:

Hard Rationing

A situation where companies cannot obtain funds for projects despite having positive net present values due to external financing constraints.

Capital Funds

Financial resources that are used to fund a company's operations and growth, typically sourced from equity or debt.

Net Present Value

A method to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period.

Variable Costs

Expenses that fluctuate in direct proportion to the quantity of output or sales, including items like labor and materials.