Answer:
If in a day, 458 call options are picked by these traders, around <u> 246.2 </u>of them will be winners, give or take<u> 10.67 </u>.
Step-by-step explanation:
Hello!
Your study variable is X: the number of winning calls in a sample of 458 calls.
The variable has a binomial distribution since you have two possible outcomes, that the call is a winning call (success) or that the call is not a winning call (failure), each call is independent and the probability of success is p= 0.5375 and the probability of failure q= 1-p= 1-0.5375= 0.4625.
The expected value for a binomial distribution is
E(X)= n*p= 458 * 0.5375= 246.175
And to know the standard error (or standard deviation) you have to calculate the square root of the variance:
V(X)= n*p*q= 458*0.5375*0.4625= 113.85
√V(X)= √113.85= 10.67
I hope it helps!
