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Assume that a procedure yields a binomial distribution with n trials and the probability of success for one trial is p. Use the given values of n and p to find the mean and standard deviation. Also use the range rule of thumb to find the minimum usual value and maximum usual value.
n= 100 p =0.8
Mean=
Standard Deviation=
Mean- 2(Standard Deviation)=
Mean+2(Standard Deviation)=
An error of .01 in the computation of the short interest rate, approximately what error do you expect to make in the computation of the value of the portfolio?
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