- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Common Probability Distributions
- Subject 4. Discrete and Continuous Uniform Distribution
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).
B. 20%
C. 100%
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 |