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R4.16. Stocks 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 for 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 a majority of years over the next decade?

R4.16. Stocks 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 for 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 a majority of years over the next decade?

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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R4.16. Stocks 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 for 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 a majority of years over the next decade?
Transcribed Image Text:R4.16. Stocks 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 for 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 a majority of years over the next decade?
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