Which of the following is least likely to be an example of a discrete random variable?
A) |
The number of days of sunshine in the month of May 2006 in a particular city. | |
B) |
The rate of return on a real estate investment. | |
C) |
Quoted stock prices on the NASDAQ. | |
The rate of return on a real estate investment, or any other investment, is an example of a continuous random variable because the possible outcomes of rates of return are infinite (e.g., 10.0%, 10.01%, 10.001%, etc.). Both of the other choices are measurable (countable). |