Fran
Administrator
AIMs: Describe the four central moments of a statistical variable or distribution: mean, variance, skewness and kurtosis.
Questions:
307.1. A bond has a default probability of 5.0%. Which is nearest, respectively, to the skew (S) and kurtosis (K) of the distribution?
a. S = 0.0, K = 2.8
b. S = 0.8, K = -7.5
c. S = 4.1, K = 18.1
d. S = 18.9, K = 4.2
307.2. Assume a discrete uniform random variable (X) can assume one of three outcomes {1, 2, or 6} with equal probability of 1/3rd each; which is to say, this is not a sample but a (population's) probability distribution. Which is nearest to this distribution's skew?
a. -0.37
b. +0.60
c. +1.44
d. +2.79
307.3. Let (X) be a random variable with three outcomes: Prob[X=1] = 25%, Prob[X=2] = 50%, and Prob[X=3] = 25%. Which is nearest to the kurtosis of this distribution?
a. 0.33
b. 2.00
c. 3.50
d. 4.75
Answers:
Questions:
307.1. A bond has a default probability of 5.0%. Which is nearest, respectively, to the skew (S) and kurtosis (K) of the distribution?
a. S = 0.0, K = 2.8
b. S = 0.8, K = -7.5
c. S = 4.1, K = 18.1
d. S = 18.9, K = 4.2
307.2. Assume a discrete uniform random variable (X) can assume one of three outcomes {1, 2, or 6} with equal probability of 1/3rd each; which is to say, this is not a sample but a (population's) probability distribution. Which is nearest to this distribution's skew?
a. -0.37
b. +0.60
c. +1.44
d. +2.79
307.3. Let (X) be a random variable with three outcomes: Prob[X=1] = 25%, Prob[X=2] = 50%, and Prob[X=3] = 25%. Which is nearest to the kurtosis of this distribution?
a. 0.33
b. 2.00
c. 3.50
d. 4.75
Answers:
