A set of possible values that a random variable can assume and their associated probabilities of occurrence are referred to as __________.
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A. B. C. D.A
The correct answer is A. Probability distribution.
A probability distribution is a statistical function that describes all the possible outcomes and the likelihood of each outcome occurring in a given set of events or trials.
In other words, it is a set of possible values that a random variable can take and their associated probabilities of occurrence.
For example, consider a coin toss. The possible outcomes are "heads" and "tails," and the probability of getting heads is 0.5, and the probability of getting tails is also 0.5. Thus, the probability distribution of a coin toss is {0.5, 0.5}.
Probability distributions are essential tools in many fields, including finance, economics, engineering, and science. In finance, probability distributions are used to model the behavior of assets, estimate the likelihood of returns, and manage risk.
Overall, understanding probability distributions is crucial in many areas, as it provides insights into the likelihood of different outcomes and helps in making informed decisions.