what is the probability that the S&P 500 finished higher for the year? -b) Given that the S&P finished higher after the first five days of trading, what is the probability that it finished higher for the year? -c) Are the two events "first week performance" and "annual performance" independent? Expaint
In 42 of the 66 years from 1950 through 2016 (in 2011 there was virtually no change), the S&P 500 finished higher after the first five days of trading. In 37 out of 42 years, the S&P 500 finished higher for the year. Is a good first week a good omen for the upcoming year? The following table gives the first-week and annual performance over this 66-year period.
|
First week |
Higher |
Lower |
Total |
|
Higher |
37 |
5 |
42 |
|
Lower |
12 |
12 |
24 |
|
Total |
49 |
17 |
66 |
-what is the
-b) Given that the S&P finished higher after the first five days of trading, what is the probability that it finished higher for the year?
-c) Are the two
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A. PROBABILITY
4.27 In 42 of the 66 years from 1950 through 2016 (in 2011
there was virtually no change), the S&P 500 finished higher after
the first five days of trading. In 37 out of 42 years, the S&P 500
finished higher for the year. Is a good first week a good omen for the
upcoming year? The following table gives the first-week and annual
performance over this 66-year period:
FIRST WEEK
Higher
Lower
AaBb CcDc AaBb CcDc AaBbC AaBbccl AaB AaBbccc AaBb CcD AaBb CcD
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Subtitle Subtle Em... Emphasis
W
S&P 500'S ANNUAL PERFORMANCE
Lower
5
12
a. If a year is selected at random, what is the probability that the
S&P 500 finished higher for the year?
Higher
37
12
b. Given that the S&P 500 finished higher after the first five days of
trading, what is the probability that it finished higher for the year?
c. Are the two events "first-week performance" and "annual
performance" independent? Explain.
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