The Standard and Poor 500 (S&P 500) is a 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.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Topic Video
Question
Lock, Statistics: Unlocking the Power of Data, 2e
Help I System Announcements
PRINTER VERSION
1 BACK
NEXT
.3131
P(increases for two consecutive days) =
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.
.3128
P(increases on a day if increased the day before) =
Z 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.
.3099
P(increases for two consecutive days) =
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.
:ON U
etv
8.
Q Search Default
Transcribed Image Text:Lock, Statistics: Unlocking the Power of Data, 2e Help I System Announcements PRINTER VERSION 1 BACK NEXT .3131 P(increases for two consecutive days) = 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. .3128 P(increases on a day if increased the day before) = Z 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. .3099 P(increases for two consecutive days) = 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. :ON U etv 8. Q Search Default
Lock, Statistics: Unlocking the Power of Data, 2e
Help I System Announcements
PRINTER VERSION
4BACK
NEXT
Chapter P, Section 1, Exercise 041
Is the Stock Market Independent?
The Standard and Poor 500 (S&P 500) is a 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 SOLUTION
LINK TO TEXT
Z Your answer is partially correct. Try 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.
3131
OTE
8.
étv
Q Search Default
Transcribed Image Text:Lock, Statistics: Unlocking the Power of Data, 2e Help I System Announcements PRINTER VERSION 4BACK NEXT Chapter P, Section 1, Exercise 041 Is the Stock Market Independent? The Standard and Poor 500 (S&P 500) is a 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 SOLUTION LINK TO TEXT Z Your answer is partially correct. Try 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. 3131 OTE 8. étv Q Search Default
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Data Collection, Sampling Methods, and Bias
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman