Module 17 - Statistics

Question 1

What are the two types of random variables?

Answer 1

Discrete Random - something with values

Continuous Random - something that can take any value and has to be measured.

Question 2

Binomial distribution may be used to calculate the probability of something occurring provided the following criteria are met:

Answer 2

• there are n identical situations
• each situation results in one of two outcomes
• the trials are independent
• the primary interest lies in the probability of a specified number of successes

Question 3

Give examples of when Poisson distribution is useful:

Answer 3

• number of telephone calls taken during a given period

- number of account qualified by an audit firm during a year

Question 4

What does the normal distribution deal with?

What are its three characteristics?

Answer 4

Continuous variables

• it peaks at a single value mean value
• it is symmetrical
• it approaches the horizontal axis on either side of the mean