- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 9. Common Probability Distributions
- Subject 1. Basic Definitions

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**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.

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**User Contributed Comments**
2

User |
Comment |
---|---|

naldo318 |
Good that this Question is easy |

Lucas24 |
Or 6000*.2 + 6000*.3 |