Exam (elaborations)
QMB 3200 Midterm 1 2024 Test with Questions and Answers|100% Solution
- Course
- Institution
QMB 3200 Midterm 1 2024 Test with Questions and Answers|100% Solution
[Show more]
Seller
Follow
Content preview
QMB 3200 Midterm 1 2024 Test withQuestions and Answers|100% Solution
In Financial Applications, _______ measures risk - ✔✔Standard Deviation
In Financial Analysis, _______ measures return - ✔✔Expected Value
Binomial Probability Distribution - ✔✔A probability distribution showing the probability of
x "successes" in n independent trials.
Poisson Probability Distribution - ✔✔Shows the probability of x independent occurrences of an
event over a specified interval of time or space
Continuous Random Variable - ✔✔A random variable that may assume any numerical value in an
interval or collection of intervals
Difference Between Discrete and Continuous Random Variable - ✔✔Discrete random variables
are computed where the random variable takes on a specific value.
Continuous random variables are computed where the random variable is within an interval (A
single point is an interval of 0, so the probability of a single value in the continuous case is zero).
Uniform Probability Distribution - ✔✔A continuous probability distribution for which the probability
that the random variable will assume a value in any interval is the same for each interval of equal length.
exponential probability distribution - ✔✔a continuous distribution that is commonly used to
measure the time between events of interest.
, normal probability distribution - ✔✔A continuous probability distribution. Its probability
density function is bell-shaped and determined by its mean and standard deviation.
Characteristics of Normal Distribution - ✔✔1. Only two parameters: μ (mean) and σ
(standard deviation).
2. The highest point is the mean, which is also the median and the mode.
3. The mean can take on any numerical value.
4. The normal distribution is symmetric; skewness = 0
5. The standard deviation determines how flat or wide the normal curve is. Larger standard deviations
result in wider or flatter curves.
6. Probabilities for a normal random variable are given by the area under the normal curve. Total
area under the curve equals 1.
7.
68.3% of values are +/- 1 σ of the μ.
95.4% of values are +/- 2 σ of the μ.
99.7% of values are +/- 3 σ of the μ.
μ is 0 and the standard deviation is 1.
What determines the shape of the bell curve? - ✔✔Standard Deviation;
Larger standard deviations
result in wider or flatter curves.
Descriptive Analytics - ✔✔Describes Past Data
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KenAli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82191 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now