- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Common Probability Distributions
- Subject 1. Introduction and Discrete Random Variables
CFA Practice Question
Suppose we have a loaded die that gives the outcomes 1 through 6 according to the following probability distribution.
B. 2000
C. 3000
Note that for this die all outcomes are not equally likely, as they would be if this were a fair die. If this die is rolled 6000 times, the number of times we get a 2 or a 3 should be about ______.
A. 1000
B. 2000
C. 3000
Correct Answer: C
Because the die is not fair, we need to use the probability distribution to determine the probabilities of the different outcomes. For this die, the probability of a 2 or 3 is 0.2 + 0.3 = 0.5. Therefore, in 6000 rolls we should get a 2 or a 3 about 0.5 x 6000 = 3000 times.
User Contributed Comments 2
User | Comment |
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naldo318 | Good that this Question is easy |
Lucas24 | Or 6000*.2 + 6000*.3 |