Explain Central Limit Theorem with random variables
Explain Central Limit Theorem with an example of random variables.
Expert
Assume that X1, X2, ... , Xn be a sequence of random variables that are independent and equally distributed (i.i.d.), along with finite mean, m and s that is standard deviation.
The sum has mean mn and standard deviation as s√n.
By the Central Limit Theorem n will be larger as the distribution of Sn tends to the normal distribution. More exactly, the distribution of S‾n converges to the normal distribution along with zero mean and unit standard deviation when n tends to infinity, if we work with the scaled quantity. The cumulative distribution for S‾n approaches as for the standardized normal distribution.
S‾n = (Sn – mn)/(s √n)
What are the interest areas for financial managers when they go through pro forma financial statements?
What is Knight in finance theory?
Explain degree of confidence and the relationship along with deviation.
What should a borrower consider before issuing dual-currency bonds? What should an investor consider before investing in dual-currency bonds?
How do flotation costs affect the cost of raising the capital when a company issues new securities?
How is Sharpe ratio making sense when Central Limit Theorem is valid?
Explain the way to load Bitmap at Dialog background within an MFC application?
Describe the three career opportunities in the field of finance.
Illustrate how the bank can employ a position alternatively in Eurodollar futures contracts to hedge the interest rate risk formed by the maturity mismatch it has with the $3,000,000 six-month Eurodollar deposit & rollover Eurocredit position indexed to th
How can you make a decision of risk aversion or a utility function measure?
18,76,764
1922167 Asked
3,689
Active Tutors
1418708
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!