CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Suppose a traffic light cycles through green for 180 seconds, then yellow for 10 seconds, and then red for 110 seconds. Find the probability that at a certain time the light is green. Find the odds in favor of the light being green.

A. 0.01; 3:5
B. 0.60; 3:5
C. 0.60; 3:2
Correct Answer: C

p = 180 / (180 + 110 + 10) = 0.6
Odds: 180:(110 + 10) = 3:2

User Contributed Comments 7

User Comment
Renaud1807 Can someone explain the odds? And how to find it with the BAII?
Beret Odds of a to b means probability E = a/(a+b) = 0.60,
Here a = 180 and b = 10 + 110
Bobokoko prob of success (0.6)/prob of failure (0.40)= 1.5/1 or to lose the decimal, 3:2
stitcher Prob of Green P(G) = 180/300 =.6
consider binomial with P(G) as success
1-P =.4
Odds for are P(G)/P(G c) = 6/4 3/2 3:2
Sanghamitra thanks all for making it so clear!
abhishekcj why not 3:5
s214111 60/1-60=60/40=3/2 or 3:2
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