CFA Practice Question

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CFA Practice Question

For random variable x from a binomial distribution with N = 20 and p = 0.3, the standard deviation is ______ (to nearest 0.01).

A. 0.30
B. 4.20
C. 2.05
Correct Answer: C

The standard deviation is sqrt[Np(1 - p)]. Here, N = 20 and p = 0.3. So, the standard deviation is sqrt[(20)(0.3)(1 - 0.3)] = 2.05 (to the nearest 0.01).

User Contributed Comments 3

User Comment
TammTamm WOW! I was actually able to work this one out without guessing. Yippee!!!!!
magicchip @TammTamm: you are on the right track! :-)
DonAnd way to go TammTamm!
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