Learning Objectives for Minitest #1
Lecture 6
The student will be able to:
1. Correctly identify discrete versus continuous random
variables and distributions.
2. Use the 4 characteristics( 0  P(xi)  1, mutually
exclusive, collectively exhaustive, and P(xi) = 1) of
a discrete probability distribution to determine if a
distribution is a probability distribution.
3. Calculate the mean of a given discrete probability
distribution.
4. Calculate the variance and standard deviation of a
given discrete probability distribution.
5. Translate verbal probability questions to symbolic
probability statements for a given discrete
probability distribution.
6. Find the corresponding probabilities for the
probability statements.
7. Given a story problem or short description of a
problem:
a. Identify the story problem or description as a
binomial probability problem.
b. Express the problem in symbolic probability
statements by hand and word-processed.
c. Find the probability for a binomial problem using
the binomial tables and Minitab.
8. Calculate the mean of the binomial distribution by
hand.
9. Calculate the variance and standard deviation of the
binomial distribution by hand.
10.
Explain in his or her own words whether or not an
event is likely to happen based on the calculated
probability.
Lecture 7
The student will be able to:
1. Given a story problem or short description of a problem:
a. Identify the story problem or description as a
Poisson probability problem.
b. Express the problem in symbolic probability
statements by hand and word-processed.
c. Find the probability for a Poisson problem using
the Poisson tables and Minitab.
2. Calculate the mean of the Poisson distribution by hand.
3. Calculate the variance and standard deviation of the
Poisson distribution by hand.
4. Calculate the covariance for a given X and Y probability
distribution.
5. Explain in your own words what a negative covariance
means in terms of risk.
6. Calculate the portfolio expected return for a given X
and Y probability distribution.
7. Calculate the portfolio risk for a given X and Y
probability distribution.
8. Compare risk among portfolio options and choose the best
from a set of options based on risk tolerance.
Lecture 8
The student will be able to:
1. Find probabilities using the standard normal table in
the text and using Minitab.
2. Transform a value from a normal distribution with a
given mean and standard deviation into a standard normal
(z) value.
3. Extract the pertinent information from a story problem
to answer a probability question about a normally
distributed variable with a known mean and standard
deviation.
4. Write a symbolic probability statement for a probability
question involving the normal distribution.
5. Calculate the value for a variable that meets a
specified probability criterion given the variable
follows a normal distribution with a given mean and
standard deviation.
Explain in your own words what changing the mean and/or the
standard deviation does to the shape of the normal curve