CFA Level I · CFA Level I Exam · Statistical Distributions for Financial Asset Prices and Returns
A continuous uniform random variable X is distributed over the interval from 4 to 12. The probability that X falls between 6 and 9 is closest to:
The probability is 0.375. For a continuous uniform variable, probability is the length of the sub-interval divided by the length of the full range: (9 - 6) divided by (12 - 4) equals 3/8, or 0.375.
- A0.25
- B0.375Correct
- C0.50
Explanation
For a continuous uniform distribution, probability equals the sub-interval length divided by the total length. (9 - 6)/(12 - 4) = 3/8 = 0.375. The value 0.25 would result from using a width of 2, and 0.50 from using a width of 4.
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