Define a random variable x to be the number of times the, Financial Econometrics

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Define a random variable x to be the number of times the

Section: Discrete Random Variables

A possible outcome of an experiment is the event A. The probability of this event is p. The experiment is performed n times, the outcome of any trial is not affected by the results of the previous trials. Define a random variable X to be the number of times the event A occurs in n trials.

(a) What is the PMF( X=x) ?

(b) Show that the sum of the PMF over all x is 1.

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Financial Econometrics: Define a random variable x to be the number of times the

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