Let X have the binomial distribution with parameters n and p. Let Y have the binomial distribution

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Let X have the binomial distribution with parameters n and p. Let Y have the binomial distribution with parameters n and p/k with k > 1. Let Z = kY.
a. Show that X and Z have the same mean.
b. Find the variances of X and Z. Show that, if p is small, then the variance of Z is approximately k times as large as the variance of X.
c. Show why the results above explain the higher variability in the bar heights in Fig. 6.2 compared to Fig. 6.1.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Probability And Statistics

ISBN: 9780321500465

4th Edition

Authors: Morris H. DeGroot, Mark J. Schervish

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