An investor has six stocks that she follows each day. The random variable being studied is X, the number of stocks that increases in value each day. The probability function for this variable is shown III. below. 1 2 3 4 5 6. f(x)=P[X=x] a. Find the probability that on a given day, majority of the stocks will increase in value. 0.34 .30 .20 .10 .05 .01 b. Find the probability that on a given day, at least 2 of the stocks will increase in value.

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.