The Following Distribution Is Not a Probability Distribution Because

question 66

Multiple Choice

The following distribution is not a probability distribution because

• A) the values of the variable are negative.
• B) the probability values are not increasing.
• C) the probability values do not add to 1.
• D) the probability values are not discrete.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, important in investment analysis and valuation.

Finance Lease

A type of lease agreement where the lessee assumes substantially all the risks and rewards of ownership of the asset.

IFRS

International Financial Reporting Standards, which are international accounting guidelines for preparing financial statements.

Lessee

A person or entity that leases an asset from another, acquiring the right to use the asset for a specified period in exchange for periodic payments.