1. The returns on the common stock of New Image Products are quite cyclical. In a boom economy, the stock is expected to return 32 percent in comparison to 14 percent in a normal economy and a negative 28 percent in a recessionary period. The probability of a recession is 25 percent while the probability of a boom is 10 percent and normal period is 65%. a. What is the expected returned of the stock? b. What is the variance of the stock? C. What is the standard deviation of the returns on this stock?

Q: How did you get those answers?

A: Since here we have two variables p and q, they can take values True (T) and False (F) each.  So, the…

Q: Why I cannot find that answer? Can you label the answer out?

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Q: he answer is still wrong

A: Sol:-We need to use Bayes' theorem to calculate this probability.  Let A be the event that Stage 3…

Q: answer question 4.

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Q: The table shows the movement of a stock for 30 randomly selected trading days. "Up" means the stock…

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Q: I need help solving this question.

A: You need to know this before solving the question.

Q: How did you figure out the answers? Can you show your work

A: Doubt: How did you figure out the answers.

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.