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Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p gives the proportion of the 600 stocks that went up yesterday that will go up today. (b) Find the standard deviation of p. (c) Compute an approximation for P(p <0.63), which is the probability that fewer than 63% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places.

Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p gives the proportion of the 600 stocks that went up yesterday that will go up today. (b) Find the standard deviation of p. (c) Compute an approximation for P(p <0.63), which is the probability that fewer than 63% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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### Stock Market Probability Analysis **Introduction:** Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. **Questions and Solutions:** (a) **Calculate the Mean of \( \hat{p} \):** \(\hat{p}\) represents the proportion of the 600 stocks that went up yesterday and will go up again today. You need to determine the mean of this proportion. (b) **Calculate the Standard Deviation of \( \hat{p} \):** Determine the standard deviation for the proportion \( \hat{p} \). (c) **Approximate \( P(\hat{p} < 0.63) \):** Calculate an approximation for the probability that fewer than 63% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places. **Graphical and Diagram Explanation:** This problem involves statistical computations and does not include any diagrams or charts to explain. The computations involve using statistical formulas (potentially from a list) to calculate probabilities and statistical measures such as mean and standard deviation for the given stock trading data set.
Transcribed Image Text:### Stock Market Probability Analysis **Introduction:** Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. **Questions and Solutions:** (a) **Calculate the Mean of \( \hat{p} \):** \(\hat{p}\) represents the proportion of the 600 stocks that went up yesterday and will go up again today. You need to determine the mean of this proportion. (b) **Calculate the Standard Deviation of \( \hat{p} \):** Determine the standard deviation for the proportion \( \hat{p} \). (c) **Approximate \( P(\hat{p} < 0.63) \):** Calculate an approximation for the probability that fewer than 63% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places. **Graphical and Diagram Explanation:** This problem involves statistical computations and does not include any diagrams or charts to explain. The computations involve using statistical formulas (potentially from a list) to calculate probabilities and statistical measures such as mean and standard deviation for the given stock trading data set.
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Given,n=600p=0.60

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