CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

Suppose you have a discrete uniform probability function such that p(X = x) = 20% for X values of 0, 1, 2, 3, and 4. Find F(4).

A. 0%
B. 20%
C. 100%
Correct Answer: C

F(4) is the probability that the function takes on values less than or equal to 4. So, F(4) = p(0) + p(1) + p(2) + p(3) + p(4) = 0.20 + 0.20 + 0.20 + 0.20 + 0.20 = 1 = 100%.

User Contributed Comments 6

User Comment
riche uniform distributed means continuos
surob Not necessarily. It can be discrete too.
gaur Remember it asked for "F"(4) and not "p"(4), p(4) =20%. F(4) = 100 'coz thats cumulative
madhi If the individual probabilities of all possible outcomes are equal, then, we can say that their distribution is uniform (Apply for both continuous and discrete distributions)
CFAonTheBrain so if it picks F(3) it's 80%?
Jurrens Right, F(3) = 80%, this is only known because it is uniformly distributed
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