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# Distribution and Security Analysis

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2. Security analysts are professionals who devote full time efforts to evaluating the investment worth of a narrow list of stocks. The following variables are of interest to security analysts. Which are discrete and which are continuous random variables?

a. the closing price of a particular stock on the New york stock exchange
b. the number of shares of a particular stock that are traded each business day.
c. the quarterly earnings of a particular firm
d. the percentage change in yearly earnings between 2008 and 2009 for a particular firm
e. the number of new products introduced per year by a firm
f. the time until a pharmaceutical company gains approval from the U.S. FDA to market a new drug

12. The random variable x has the following discrete probability distributions:

x 1 3 5 7 9
p(x) .1 .2 .4 .2 .1

a. list the values x may assume
b. what value of x is most probable
c. display the probability distribution as a graph
d. find P(x=7)
e. find P(x > or = 5)
f. find P(x>2)

14. Explain why each of the following is or is not a valid probability distribution for a discrete random variable x:

a. x 0 1 2 3
p(x) .1 .3 .3 .2

b. x -2 -1 0
p(x) .25 .50 .25

c. x 4 9 20
p(x) -.3 .4 .3

d. x 2 3 5 6
p(x) .15 .15 .45. 35.

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The solution discusses the distribution and security analysis.

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a. the closing price of a particular stock on the New york stock exchange
- discrete since there are only finite number of values

b. the number of shares of a particular stock that are traded each business day
- discrete since there are only finite number of values

c. the quarterly earnings of a particular firm
- discrete since there are only finite number of values

d. the percentage ...

##### Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

##### Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.