TABLE 5-11 Subscribers to Investment Advice White Letters Perform Security Transactions at Transactions

question 127

Short Answer

TABLE 5-11
Subscribers to Investment Advice White Letters perform security transactions at the rate of five trades per month.Assume that one of the subscribers performs transactions at this rate and the probability of a transaction for any two months is the same and the number of transactions in one month is independent of the number of transactions in another month.
-Referring to Table 5-11,what is the variance of the number of transactions per month for this subscriber?

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