Reading 8: Probability Concepts LOS a: Define a random variable, an outcome, an event, mutually exclusive events, and exhaustive events. 1、For a stock, which of the following is NOT a random variable? A) Its most recent closing price. B) Its P/E ratio. C) Its current ratio. D) Its stock symbol. The correct answer was D) A random variable must be a number. Sometimes there is an obvious method for assigning a number, such as when the random variable is a number itself, like a P/E ratio. A stock symbol of a randomly selected stock could have a number assigned to it like the number of letters in the symbol. The symbol itself cannot be a random variable.
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