Stocks Since the stock market began in 1872, stockprices have risen in about 73% of the years. Assumingthat market performance is independent from year toyear, what’s the probability thata) the market will rise for 3 consecutive years?b) the market will rise 3 years out of the next 5?c) the market will fall during at least 1 of the next 5 years?d) the market will rise during a majority of years overthe next decade?
Stocks Since the stock market began in 1872, stockprices have risen in about 73% of the years. Assumingthat market performance is independent from year toyear, what’s the probability thata) the market will rise for 3 consecutive years?b) the market will rise 3 years out of the next 5?c) the market will fall during at least 1 of the next 5 years?d) the market will rise during a majority of years overthe next decade?
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 9ECP: A random number generator selects two integers from 1 to 30. What is the probability that both...
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Stocks Since the stock market began in 1872, stock
prices have risen in about 73% of the years. Assuming
that market performance is independent from year to
year, what’s the probability that
a) the market will rise for 3 consecutive years?
b) the market will rise 3 years out of the next 5?
c) the market will fall during at least 1 of the next 5 years?
d) the market will rise during a majority of years over
the next decade?
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