Study Session 2, Reading 8.. Probablity concepts...

Is anyone finding the Reading 8 difficult, confusing, etc… I am not able to do well on this Reading… its going slow and am not able to remember the concepts well…

I am hoping they don’t ask questions about this. All I have nailed down is: nCr = n! / (n-r)! >0 correlation is positively correlated <0 is negatively correlated 0 is no correlation Cov = Corr1,2/ (Stnd Dev1*Stnd Dev2) Tree diagram Actuall reviewing the LOS’s it seems that I know more than I thought. I just hope they don’t test LOS 8e, that is where I get lost.

Isn’t it Cov=Corr*(Stnd Dev1*Stnd Dev 2)?

moto376 Wrote: ------------------------------------------------------- > Isn’t it Cov=Corr*(Stnd Dev1*Stnd Dev 2)? Yes

List of Wussies: trek7000 finfan

I think you can add my name to that list. Quant in general is eating my lunch!

Don’t worry I will still take the test to help bring down the curve for all you folks :slight_smile: I was thinking of Corr Coefficient = COV(R1,R2)/stnd Dev1 * Stnd Dev2