# Study Session 3: Quantitative Methods: Application

## Probability Distributions - Quicker method?

Is there a quicker method to getting the correct answer?

The questions is easy but the time it takes to get the answer is long. (Took me 2:47 and that was using the STO/RCL functions on TI BA II Plus) Just curious. Thanks

P = .7 , N = 7, X = 4

Find probability of 4 or fewer successes.

The correct answer is 35.3 percent.

## Binomial Distribution (Wiley Study Guide)

https://drive.google.com/open?id=1psPdwdZlbPSkbwLzMWjz_3hIji0xgiO-

Can someone explain if the answer is 29% (which i believe to be correct) or .829%?

The last paragraph has confused me as making ‘exactly’ 3 sales is the same as making ‘only’ 3 sales, isnt it?

Thanks

## Solving for r - Help with equation

Hi - I am drawing a comlete blank.

I know I can do the steps to get the answer (6.91%) on calc but want to understand this please.

Solving for *r*,

$1,000 + $3,165/(1+r) = $25/(1+r) + $4,500/(1+r)^{2}

## One or two tailed test for t test

How do you determine to use a one tailed or two tailed level of signifigance? What in the question do you base this off of?

## null hypothesis

In the reading of 12.2, it says:

The null hypothesis is a proposition that is considered true unless the sample we use to conduct it gives convincing evidence it is false.

So why is this statement wrong:

The null hypothesis is the condition a researcher hopes to support?

## calculate mean, variance and stdev

I’m on the quantitative part, i got the TI BAII calculator. But i find it still hard/time consuming to get mean and stdev for a data series. Getting mean is fine, except lot of pressing. But to get the stdev/variance, you will need to keep a lot of intermediate result, and this takes a lot of time, e.g. one of the practice problems had 13 data points. So what is the best/fastest way to calculate those parameters?

## Suggestion for Quant

Hi,

So I am studying the Quants part now. TVM and IRR concepts are pretty clear and ok. But now when I have moved to Statistics, Probability etc it feels difficult to grasp. Maths was never my strong suite. So I would like to know how heavy in terms of wightage are these chapters in L1 and also in L2 and 3. Can I skip these and try to get some extra marks in some other topics?

Thanks.

## Quants Help

A group of investors wants to be sure to always earn at least a 5% rate of return on their investments. They are looking at an investment that has a normally distributed probability distribution with an expected rate of return of 10% and a standard deviation of 5%. The probability of meeting or exceeding the investors’ desired return in any given year is closest to:

A) 84%. CORRECT ANSWER

B) 98%.

C) 34%.

## Confidence Interval

Hi all,

I was hoping someone could clarify a question I am stuck on.

The 95% confidence interval of the sample mean of employee age for a major corporation is 19 years to 44 years based on a a z-statistic. The population of employees is more than 5,000 and the sample size of this test is 100. Assuming the population is normally distributed, the standard error of mean employee age is *closest* to:

A. 1.96

B. 2.58

C. 6.38

The answers is C, 6.38 - but I have trouble understanding why.

Any insights would be hugely appreciated.

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