UCF QMB 3200 CORE MAIN EXAMINATION
QUESTIONS AND ANSWERS SURE A+
✔✔What is one way to measure finanical risk of an asset? - ✔✔Standard deviation
✔✔Binomial Probability Distribution - ✔✔Is based on the following four properties:
1. The experiment consists of a sequence of n
identical trials.
2. Two outcomes are possible on each trial; success
or failure.
3. The probability of success (p) and the probability
of failure (1-p) does not change from trial to trial.
4. The trials are independent.
We are interested in the number of successes in the
n trials. Since x has values 0, 1, 2, ... n, x is finite and
a discrete random variable, and the probability
distribution from this random variable is the binomial
probability distribution.
A classic example is consecutive coin tosses - which meets the four properties.
, ✔✔How would we calculate a binomial probability for excel? -
✔✔=Binom.Dist(x,trials,probability of success,True/FALSE)
Binom.Dist first needs a value for x, then a value for
n, a value of p, and finally either TRUE (cumulative
probability) or FALSE (probability).
✔✔Poisson Probability Distribution - ✔✔This distribution relates to the case for
estimating the
number of occurrences over a specified interval of
space/time.
The mean and the variance are equal.
Ex: Number of patients arriving at an emergency room
during a 15-minute weekday morning interval
✔✔Properties of a Poisson Experiment - ✔✔1. The probability of an occurrence is the
same for
any two intervals of equal length.
2. Occurrence or non-occurrence in any interval is
independent of the occurrence or non-occurrence in
any other interval.
✔✔How would we calculate a poisson distribution in excel? -
✔✔=Poisson.Dist(x,μ,True/FALSE)
Use Poisson.Dist, where we need the value of x, the
value of μ and TRUE (cumulative probability) or
FALSE (probability).
✔✔Hypergeometric Probability Distribution - ✔✔The Hypergeometric Probability
Distribution is similar
to the binomial distribution, except the trials are not
independent and the probability of success changes
from trial to trial.
NOTE: r is the number of successes in population N,
and N-r is the number of failures.
EX: We are taking out 5 items from a toy line and need to know the probability of the
toys being defective or working.
✔✔How would we calculate hypergeometric probability distribution in excel? -
✔✔=Hypergeom.Dist(x,μ,r,N,TRUE/FALSE)
QUESTIONS AND ANSWERS SURE A+
✔✔What is one way to measure finanical risk of an asset? - ✔✔Standard deviation
✔✔Binomial Probability Distribution - ✔✔Is based on the following four properties:
1. The experiment consists of a sequence of n
identical trials.
2. Two outcomes are possible on each trial; success
or failure.
3. The probability of success (p) and the probability
of failure (1-p) does not change from trial to trial.
4. The trials are independent.
We are interested in the number of successes in the
n trials. Since x has values 0, 1, 2, ... n, x is finite and
a discrete random variable, and the probability
distribution from this random variable is the binomial
probability distribution.
A classic example is consecutive coin tosses - which meets the four properties.
, ✔✔How would we calculate a binomial probability for excel? -
✔✔=Binom.Dist(x,trials,probability of success,True/FALSE)
Binom.Dist first needs a value for x, then a value for
n, a value of p, and finally either TRUE (cumulative
probability) or FALSE (probability).
✔✔Poisson Probability Distribution - ✔✔This distribution relates to the case for
estimating the
number of occurrences over a specified interval of
space/time.
The mean and the variance are equal.
Ex: Number of patients arriving at an emergency room
during a 15-minute weekday morning interval
✔✔Properties of a Poisson Experiment - ✔✔1. The probability of an occurrence is the
same for
any two intervals of equal length.
2. Occurrence or non-occurrence in any interval is
independent of the occurrence or non-occurrence in
any other interval.
✔✔How would we calculate a poisson distribution in excel? -
✔✔=Poisson.Dist(x,μ,True/FALSE)
Use Poisson.Dist, where we need the value of x, the
value of μ and TRUE (cumulative probability) or
FALSE (probability).
✔✔Hypergeometric Probability Distribution - ✔✔The Hypergeometric Probability
Distribution is similar
to the binomial distribution, except the trials are not
independent and the probability of success changes
from trial to trial.
NOTE: r is the number of successes in population N,
and N-r is the number of failures.
EX: We are taking out 5 items from a toy line and need to know the probability of the
toys being defective or working.
✔✔How would we calculate hypergeometric probability distribution in excel? -
✔✔=Hypergeom.Dist(x,μ,r,N,TRUE/FALSE)
