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October 31, 2014

Homework Help: stats

Posted by Anonymous on Tuesday, May 11, 2010 at 12:45am.

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 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 the majority of years over the next decade?

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