fund manager has twenty analysts working for her. Each analyst recommends a stock to the manager. The stock that any analyst picks has a 0.6 chance of beating the market. Assuming each analyst’s pick is independent of any other, what is the probability that 11 or more analyst picks beat the market
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.
Question 5:
A fund manager has twenty analysts working for her. Each analyst recommends a stock to the manager. The stock that any analyst picks has a 0.6 chance of beating the market. Assuming each analyst’s pick is independent of any other, what is the probability that 11 or more analyst picks beat the market?
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