Continuous Random Variables That Can Assume Values at All Points

question 153

Multiple Choice

Continuous random variables that can assume values at all points on an interval of values, with no breaks between possible values, are quite common. Which of the following items could NOT be classified as a continuous random variable?

• A) profit per dollar of sales
• B) cost per credit taken by graduate students
• C) the average time it takes to assemble a car, or write a test
• D) heights of human beings rounded to the nearest inch

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Definitions:

Loanable Funds

The total amount of financial capital available for borrowing in financial markets.

Investment Projects

Initiatives undertaken by individuals, companies, or governments to allocate resources in the expectation of future financial returns.

Usury Laws

Regulations that set maximum interest rates which can be charged on loans, to protect borrowers from excessively high rates.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal, paid to lenders over a period.