1. Copyright © 2014, 2011 Pearson Education, Inc. 1 Active Learning Lecture Slides For use with Classroom Response Systems Chapter 9 Random Variables

2. Copyright © 2014, 2011 Pearson Education, Inc. 2 The uncertain numerical outcome of a random process is called a… A. future variable. B. predictor variable. C. random variable. D. probability variable.

3. Copyright © 2014, 2011 Pearson Education, Inc. 3 The uncertain numerical outcome of a random process is called a… A. future variable. B. predictor variable. C. random variable. D. probability variable.

4. Copyright © 2014, 2011 Pearson Education, Inc. 4 If one can list all possible outcomes of a random variable then it is called… A. a continuous random variable. B. a discrete random variable. C. a fixed random variable. D. both A. and B. above.

5. Copyright © 2014, 2011 Pearson Education, Inc. 5 If one can list all possible outcomes of a random variable then it is called… A. a continuous random variable. B. a discrete random variable. C. a fixed random variable. D. both A. and B. above.

6. Copyright © 2014, 2011 Pearson Education, Inc. 6 The mean µ of a random variable is… A. the average of the possible outcomes. B. a weighted average of the possible outcomes. C. the sum of the possible outcomes. D. always equal to 1.

7. Copyright © 2014, 2011 Pearson Education, Inc. 7 The mean µ of a random variable is… A. the average of the possible outcomes. B. a weighted average of the possible outcomes. C. the sum of the possible outcomes. D. always equal to 1.

8. Copyright © 2014, 2011 Pearson Education, Inc. 8 A weighted average that uses the probabilities to weight the possible outcomes is called the… A. expected value. B. mean value. C. median value. D. mode value.

9. Copyright © 2014, 2011 Pearson Education, Inc. 9 A weighted average that uses the probabilities to weight the possible outcomes is called the… A. expected value. B. mean value. C. median value. D. mode value.

10. Copyright © 2014, 2011 Pearson Education, Inc. 10 Adding or subtracting a constant to a random variable… A. does not affect the expected value. B. changes the expected value by that factor. C. changes the expected value by the square of that factor. D. changes the expected value by the constant.

11. Copyright © 2014, 2011 Pearson Education, Inc. 11 Adding or subtracting a constant to a random variable… A. does not affect the expected value. B. changes the expected value by that factor. C. changes the expected value by the square of that factor. D. changes the expected value by the constant.

12. Copyright © 2014, 2011 Pearson Education, Inc. 12 Adding or subtracting a constant to a random variable… A. does not affect the variance or standard deviation. B. changes the the variance and standard deviation by that factor. C. changes the variance and standard deviation by the square of that factor. D. changes the variance and standard deviation by that fixed amount.

13. Copyright © 2014, 2011 Pearson Education, Inc. 13 Adding or subtracting a constant to a random variable… A. does not affect the variance or standard deviation. B. changes the the variance and standard deviation by that factor. C. changes the variance and standard deviation by the square of that factor. D. changes the variance and standard deviation by that fixed amount.

14. Copyright © 2014, 2011 Pearson Education, Inc. 14 Multiplying the value of a random variable by a constant… A. does not affect the expected value. B. changes the expected value by that factor. C. changes the expected value by the square of that factor. D. changes the expected value by that fixed amount.

15. Copyright © 2014, 2011 Pearson Education, Inc. 15 Multiplying the value of a random variable by a constant… A. does not affect the expected value. B. changes the expected value by that factor. C. changes the expected value by the square of that factor. D. changes the expected value by that fixed amount.

16. Copyright © 2014, 2011 Pearson Education, Inc. 16 Multiplying the value of a random variable by a constant… A. does not affect the mean or standard deviation. B. changes the mean and standard deviation by that factor. C. changes the mean and standard deviation by the square of that factor. D. changes the mean and standard deviation by that fixed amount.

17. Copyright © 2014, 2011 Pearson Education, Inc. 17 Multiplying the value of a random variable by a constant… A. does not affect the mean or standard deviation. B. changes the mean and standard deviation by that factor. C. changes the mean and standard deviation by the square of that factor. D. changes the mean and standard deviation by that fixed amount.

18. Copyright © 2014, 2011 Pearson Education, Inc. 18 Multiplying the value of a random variable by a constant… A. does not affect the variance. B. changes the variance by that factor. C. changes the variance by the square of that factor. D. changes the variance by that fixed amount.

19. Copyright © 2014, 2011 Pearson Education, Inc. 19 Multiplying the value of a random variable by a constant… A. does not affect the variance. B. changes the variance by that factor. C. changes the variance by the square of that factor. D. changes the variance by that fixed amount.

20. Copyright © 2014, 2011 Pearson Education, Inc. 20 The higher the Sharpe ratio, which measures the relative size of rewards in comparison to risks… A. the worse the investment. B. the better the investment. C. the less money you lose. D. you need other information to draw a conclusion.

21. Copyright © 2014, 2011 Pearson Education, Inc. 21 The higher the Sharpe ratio, which measures the relative size of rewards in comparison to risks… A. the worse the investment. B. the better the investment. C. the less money you lose. D. you need other information to draw a conclusion.