Which of the Following Is Correct About a Probability Distribution

question 7

Multiple Choice

Which of the following is correct about a probability distribution? (i) Sum of all possible outcomes must equal 1.
(ii. Outcomes must be mutually exclusive.
(iii) Probability of each outcome must be between 0 and 1 inclusive.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Fixed Cost

Expenses that do not change in the short term, regardless of the level of output or sales, such as rent, salaries, and loan payments.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and price-setting ability.

Short Run

A period during which at least one factor of production is considered fixed, limiting the capacity to adjust production levels.

Continue to Operate

A business decision to keep running the operations despite challenges or low profitability in the short term.