- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 3. Frequency Distributions

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**CFA Practice Question**

A discrete uniform distribution is defined over the range, X = 2 to 6. What is the cumulative probability that the observations 4, 5 and 6 will be observed?

A. 60%

B. 20%

C. 50%

**Explanation:**This distribution is defined over five discrete outcomes, each with a probability of 0.2 (= 1/5). Thus, the cumulative probability of observing 4, 5, and 6 would be 3 x 0.2 = 0.6, or 60%.

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**User Contributed Comments**
2

User |
Comment |
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Chl4072 |
Why 5 outcomes..? Why 1/5..? |

Chl4072 |
5 outcomes, each outcomes 1/5= 0.2 Got it!!! |