Quiz 2 of Python and Statistics for Financial Analysis

Roll two dice and X is the sum of faces values. If we roll them 5 times and get 2,3,4,5,6

Which of the following is/are true about X?

Roll two dice and X is the sum of faces values. If we roll them 5 times and get 2,3,4,5,6

What do we know about X?

Roll two dice and X is the sum of faces values. If we roll them 5 times and get 2,3,4,5,6

X is a ________ random variable.

Why do we use relative frequency instead of frequency?

What can we say about relative frequency when we have large number of trials?

What is the notion of “95% Value at Risk” ?

In the lecture video, we mentioned the calculation of continuous random variable is based on the probability density function.

Given a probability density function, f(x) = 1/100, what is the probability P(10<X<20), where X~Uniform[0, 100]?

What methods should we use to get the cdf and pdf of normal distribution?

Which additional library should we import when we want to calculate log daily return specifically?

What is the distribution of stock returns suggested by Fama and French in general?