{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MGT STATS - Test 2 Cheat Sheet

MGT STATS - Test 2 Cheat Sheet - P(B|A = P(A|B P(B P(A...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
P(B|A) = P(A|B) * P(B) / P(A) P(A|B) = P(B|A) * P(A) / (B) E(x) = ∑xP(x) ơ 2 = ∑(x-E(x)) 2 P(x) Standard Dev = ơ 1/2 E(x) = Return = risk ơ Co-variance ơ xy = ∑(x-E(x))(y-E(y))P(xy) negative Co-variance is ok ơ 2 x+y = ơ x 2 + ơ y 2 +2 xy ơ Portfolio Expected Return = E(p) = wE(x) + (1-w)(E(y)) w = proportion invested ơ p = [w 2 ơ x 2 + (1-w) 2 ơ y 2 + 2(w)(1-w) xy] ơ 1/2 P(x) = [n! / x!(n-x)!] * p x q n-x q n = # of trials x = # of successes p = prob. of s. q = prob of f. The four assumptions that must be met for a prob distribution to qualify as a binomial distribution. 1. series of ‘n’ identical trials 2. 2 only possible outcomes 3. Prob s(p) + Prob f(q) must remain constant 4. Independent Trials Poisson Distribution – to determine the prob of ‘x’ # of occurrences of an event over a specified period of time on
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}