(c) Between January 1, 2009 and January 1, 2012 the S&P 500 increased on two consecutive market days 234 times out of a possible 755. Based on this information, what is the probability that the S&P 500 increases for two consecutive days? Round your answer to four decimal places. P(increases for two consecutive days) = 3099 What is the probability that the S&P 500 increases on a day, given that it increased the day before? Round your answer to four decimal places. .3131 P(increases on a day if increased the day before) = M Correct.

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Is the Stock Market Independent?
The Standard and Poor 500 (S&P 500) Isa weighted average of the stocks for 500 large companies in the United States. It is commonly used as a measure of the overall performance of the US
stock market. Between January 1, 2009 and January 1, 2012, the S&P 500 increased for 423 of the 756 days that the stock market was open. We will investigate whether changes to the S&P 500
are independent from day to day. This is important, because if changes are not independent, we should be able to use the performance on the current day to help predict performance on the next
day.
M Correct.
(a) What is the probability that the S&P 500 increased on a randomly selected market day between January 1, 2009 and January 1, 2012?
Round your answer to four decimal places.
P(increase) =
.5595
the absolute tolerance is +/-0.0005
SHOW HINT
SHOW SOLUTION
LINK ΤO ΤΕXT
Z Your answer is partially correct. Ty again.
(b) If we assume that daily changes to the S&P 500 are independent, what is the probability that the S&P 500 increases for two consecutive days?
Round your answer to four decimal places.
P(increases for two consecutive days) =3131
What is the probability that the S&P 500 increases on a day, given that it Increased the day before?
étv
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Transcribed Image Text:O Mail - Keenan Sha... Dashboard Sapling Learning |.. Your Sets | Quizlet Homeрage O Psychology Resea... Adiponitrile Molec. US Lock, Statistics: Unlocking the Power of Data, 2e Help I System Announcements PRINTER VERSION 1 BACK NEXT Is the Stock Market Independent? The Standard and Poor 500 (S&P 500) Isa weighted average of the stocks for 500 large companies in the United States. It is commonly used as a measure of the overall performance of the US stock market. Between January 1, 2009 and January 1, 2012, the S&P 500 increased for 423 of the 756 days that the stock market was open. We will investigate whether changes to the S&P 500 are independent from day to day. This is important, because if changes are not independent, we should be able to use the performance on the current day to help predict performance on the next day. M Correct. (a) What is the probability that the S&P 500 increased on a randomly selected market day between January 1, 2009 and January 1, 2012? Round your answer to four decimal places. P(increase) = .5595 the absolute tolerance is +/-0.0005 SHOW HINT SHOW SOLUTION LINK ΤO ΤΕXT Z Your answer is partially correct. Ty again. (b) If we assume that daily changes to the S&P 500 are independent, what is the probability that the S&P 500 increases for two consecutive days? Round your answer to four decimal places. P(increases for two consecutive days) =3131 What is the probability that the S&P 500 increases on a day, given that it Increased the day before? étv Q Search Default
Mail - Keenan Sha...
Dashboard
* Sapling Learning ...
Your Sets | Quizlet
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O Psychology Resea.
Adiponitrile Molec.
IS Lock, Statistics: Unlocking the Power of Data, 2e
Help I System Announcements
PRINTER VERSION
4BACK
NEXT
P(increases on a day if increased the day before) =
.3128
2 Your answer is partially correct. Try again.
(c) Between January 1, 2009 and January 1, 2012 the S&P 500 increased on two consecutive market days 234 times out of a possible 755. Based on this information, what is the probability that
the S&P 500 increases for two consecutive days?
Round your answer to four decimal places.
P(increases for two consecutive days) =T3099
What is the probability that the S&P 500 increases on a day, given that it increased the day before?
Round your answer to four decimal places.
P(increases on a day if increased the day before) =
.3131
V Correct.
(d) Compare your answers to part (b) and part (c). Do you think that this analysis proves that daily changes to the S&P 500 are not independent?
We have little
evidence that daily changes are not independent.
Click if you would like to Show Work for this question:
Open Show Work
SHOW HINT
SHOW SOLUTION
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Transcribed Image Text:Mail - Keenan Sha... Dashboard * Sapling Learning ... Your Sets | Quizlet - Homepage O Psychology Resea. Adiponitrile Molec. IS Lock, Statistics: Unlocking the Power of Data, 2e Help I System Announcements PRINTER VERSION 4BACK NEXT P(increases on a day if increased the day before) = .3128 2 Your answer is partially correct. Try again. (c) Between January 1, 2009 and January 1, 2012 the S&P 500 increased on two consecutive market days 234 times out of a possible 755. Based on this information, what is the probability that the S&P 500 increases for two consecutive days? Round your answer to four decimal places. P(increases for two consecutive days) =T3099 What is the probability that the S&P 500 increases on a day, given that it increased the day before? Round your answer to four decimal places. P(increases on a day if increased the day before) = .3131 V Correct. (d) Compare your answers to part (b) and part (c). Do you think that this analysis proves that daily changes to the S&P 500 are not independent? We have little evidence that daily changes are not independent. Click if you would like to Show Work for this question: Open Show Work SHOW HINT SHOW SOLUTION étv Q Search Default
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