Reconsider your assessed 0.05 and 0.95 fractiles in Problem 8.13.If you are perfectly calibrated when judging these
Question:
a. Assuming you are perfectly calibrated, what is the probability that0, 1, or 2 of the 10 actual values fall between the assessed fractiles?
b. To justify using the binomial distribution to answer part a, you must assume that the chance of any particular value falling between its fractiles is the same regardless of what happens with the other variables. Do you think this is a reasonable assumption? Why or why not?
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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Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly
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