CA Foundation · Quantitative Aptitude · Theoretical Distributions
For a binomial random variable with n = 10 trials and success probability p = 0.3, which pair gives its mean and variance?
The mean is 3 and the variance is 2.1. For a binomial distribution the mean is np, which is 10 times 0.3, and the variance is npq, which is 10 times 0.3 times 0.7. Mean and variance are therefore 3 and 2.1.
- AMean 3, variance 2.1Correct
- BMean 3, variance 0.9
- CMean 7, variance 2.1
- DMean 2.1, variance 3
Explanation
Mean = np = 10 × 0.3 = 3. Variance = npq = 10 × 0.3 × 0.7 = 2.1. Variance 0.9 results from using p² (0.3 × 3) rather than q = 0.7, and mean 7 uses the failure probability.
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