Question

The table displays the probabilities of profit values at a company. The random variable x displays gains and losses in thousands of dollars. Does the table describe a probability distribution? Why or why not?

Answer 1

A. Yes, because the sum of the probabilities in the table is equal to 1

Explanation:

Given table shows the probabilities of profit values at a company.

Negative values of x represents company's losses, positive values of x represents company's gains and x = 0 represents that company neither loses nor gains.

Add all probabilities:

`0.09+0.24+0.33+0.22+0.12=1`

This means the table secribes the probability distibution.Hence, correct option is option A.