Mathematics, 24.11.2020 04:00, skpdancer1605
One theory concerning the Dow Jones Industrial Average is that it is likely to increase during the US Presidential election years. From 1964-2016, the Dow Jones Industrial Average increase in 11 of the 14 US presidential election years. Assuming that this indicator is a random event with predictive value, you would expect that the indicator would be correct 50% of the time. a. what is the probability of the Dow Jones Industrial Average increasing 11 for more of the US presidential election years if the probability of an increase in the Dow Jones Industrial Average is 0.50? b. what is the probability that the Dow Jones Industrial Average will increase in 11 or more of the 14 presidential election years if the probability of an increase in the Dow Jones Industrial average in any year it 0.75?
Answers: 2
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