miller

How will we solve the same by problem by using 70 and 30 percent probability sum by taking probailiy 70 and 30

Hi David, Apologies if this question is non-sensible or has been asked already (please tag a link if this question has been asked) but I just started preparing for an exam and I have one question so I know what to expect when I am learning it. Integration and calculus sort of questions as far as...

This explores the answer to Miller's sample question in Chapter 6 of Mathematics and Statistics for Financial Risk Management. There are three types of managers: Out-performers (MO), in-line performers (MI) and under-performers (MU). The prior probability that a manager is an outperformer is...

Can someone explain how mean & variance have been calculated in this example?

Hello, i have the following question: 1. The joint probability for two independent events is defined as: P(A and B)=P(A)xP(B) 2. Why is not P(High=20%)xP(Increase=40%)=P(Increase and High=10%). Or should it be and only the example is wrong? Can anybody explain it please? I wish all...