Two Random Variables X and Y Are Independently Distributed If

question 24

Multiple Choice

Two random variables X and Y are independently distributed if all of the following conditions hold,with the exception of

• A)Pr(Y = y = x)= Pr(Y = y).
• B)knowing the value of one of the variables provides no information about the other.
• C)if the conditional distribution of Y given X equals the marginal distribution of Y.
• D)E(
• Y)= E[E(Y )].

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Definitions:

Mortgage Default Rate

The percentage of borrowers who fail to make required loan payments on their mortgage.

Foreclosure Rate

The percentage of home mortgages on which the lender has started the process of taking ownership of the property because the borrower has failed to make the monthly payments.

Economic Expansions

Periods when an economy grows and not just recovers from a decline, typically seen by increases in industrial production, employment, and sales.

Mortgage Default Rates

The percentage of borrowers failing to make their mortgage payments on time, leading to default.