easy · FRM Part 1 Quantitative Analysis
Under what conditions can the Poisson distribution be used to approximate the Binomial distribution?
- When the number of trials n is large and the probability of success p is small.
- When the probability p is exactly 0.50 and n is small.
- When the variance of the Binomial distribution exceeds the mean.
- When the trials are dependent and the probability p varies.
Sign up free to see the explanation and track your rank →
More FRM Part 1 Quantitative Analysis practice
- A probability distribution that is asymmetric and has a significantly long tail extending
- A single discrete trial that results in exactly one of two possible outcomes (success or f
- How does the mean of a lognormal distribution compare to the mean of its associated normal
- If an analyst says a return series has 'fat tails,' what does this imply for a risk model
- If the correlation between two assets is -1.0, what does this indicate about their co-move
- In Bayesian inference, what does the term 'Updating' refer to?
- In combinatorics, which coefficient represents the number of ways to select r items from a
- In the context of credit risk, if D is the event of default and F is a model flag, how is