A student tosses a fair coin times and lets be the number of heads observed. Thus
\nFor a complicated risk measure, the student needs the value of the fourth moment . \nDefine
\nCompute the exact integer value of .
[THOUGHT] The random variable follows a binomial distribution with parameters and . The fourth moment is computed using the formula for the fourth moment of a binomial distribution, which involves Stirling numbers of the second kind. The formula is:
where , , , and .
Substituting and :
- First term:
- Second term:
- Third term:
- Fourth term:
Calculate , , , and .
Summing the terms: , , .
Thus, .
Now, .
The exact integer value of is 13072500.
[THOUGHT] We are to compute the fourth moment of a binomial random variable N ~ Binomial(20, 1/2), then multiply by 1000 to get K. The exact value of K is an integer. We use Python to compute the sum of k^4 * C(20,k) for k from 0 to 20, then multiply by 1000 and divide by 2^20 to get the integer K. [/THOUGHT] [PYTHON] import math n = 20 total = 0 for k in range(0, n+1): binom = math.comb(n, k) total += k4 * binom K = (1000 * total) // (220) print(K) [/PYTHON]