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Chapter 4: Q10. (page 217)

Stock market. Give an example of a continuous random variable that would be of interest to a stockbroker.

Short Answer

Expert verified

Example: The time taken by a stockbroker for the completion of the transactions of the stocks.

Step by step solution

01

Elucidating the continuous random variables

The continuous random variables are those variables that take infinite values for which it is very difficult to count by anyone. The values of continuous random variables can fluctuate a lot.

02

Specifying the example of the continuous random variables

The time taken for the completion of the transaction of stocks between two market participants through a stockbroker varies a lot. The variation in time depends upon the situation and the momentum of change in the stock prices, which means that it can take infinite values.

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