--%>

An example of distribution of individual or random numbers

Illustrates an example of distribution of individual numbers or random numbers.

E

Expert

Verified

Play a dice game, here you win $10 when you throw a six, but lose $1 when you throw anything else. Therefore distribution of your profit after one coin toss is obviously not normal, it’s skewed and bimodal, but when you play the game thousands of times your total net profit will be around normal.

   Related Questions in Financial Management

  • Q : Running of net balance of payments

    Explain how a country can run net balance of payments deficit or surplus.A country can run net BOP deficit or surplus by engaging in the official reserve transactions. For instance, an overall BOP deficit can be supported through drawing down th

  • Q : How are short or future option margins

    How are short or future option margins to be paid at credit risk?

  • Q : Which numerical method should you use

    You need to price a fixed-income contract by using the BGM model. Which numerical method should you use?

  • Q : Illustrates formula of Rho for foreign

    Illustrates the formula of Rho for the foreign exchange option value?

  • Q : Deterministic modelling approach in

    Explain the Deterministic modelling approach in Quantitative Finance.

  • Q : Illustrates an example of LIBOR Market

    Illustrates an example of LIBOR Market Model?

  • Q : What is Meant by ‘Complete’ and

    What is Meant by ‘Complete’ and ‘Incomplete’ Markets?

  • Q : Forecast the future exchange rates

    Researchers found that this is very hard to forecast the future exchange rates more precisely than the forward exchange rate or the current spot exchange rate. How would you interpret this?This implies that exchange markets are informationally e

  • Q : FM Based on the information below,

    Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 10%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. Th

  • Q : Current income and common stockholders

    What is the meaning of statement: earnings available to common stock dividends paid from the current income and common stockholders statement affect the balance sheet item retained earnings.