Answer: Table A: Marginal Distribution of Company A Company A(X₁) | -1 Million | 0 Million | 2 Million | 4 Million P(X₁ = x₁) | 0.0697 | 0.4274 | 0.3436 | 0.1598

The correct answer is **Table A**. **Explanation:** A marginal distribution gives the probability distribution of a single variable from a joint distribution, obtained by summing the joint probabilities over all possible values of the other variable(s). In this case, for a bivariate distribution, the marginal PMF of X₁ (Company A) is computed by summing up the probabilities for X₁ across all the values at which X₂ (Company B) is realized. For example, the first probability P(X₁ = -1M) would be calculated by summing all joint probabilities where X₁ = -1M across all values of X₂. **Key characteristics of a valid marginal distribution:** 1. All probabilities must be between 0 and 1 2. The sum of all probabilities must equal 1 Let's verify Table A: - 0.0697 + 0.4274 + 0.3436 + 0.1598 = 1.0005 (approximately 1, accounting for rounding) - All values are valid probabilities between 0 and 1 Table A represents the correct marginal distribution for Company A, as it satisfies the fundamental properties of a probability distribution.

Author: Tanishq Prabhu