Question: A stock market analyst claims expertise in picking stocks that
A stock market analyst claims expertise in picking stocks that will outperform the corresponding industry norms. This analyst is presented with a list of 5 high-technology stocks and a list of 5 airline stocks, and she is invited to nominate, in order, the 3 stocks that will do best on each of these 2 lists over the next year. The analyst claims that success in just 1 of these 2 tasks would be a substantial accomplishment. If, in fact, the choices are made randomly and independently, what is the probability of success in at least 1 of the 2 tasks merely by chance? Given this result, what do you think of the analyst's claim?
Answer to relevant QuestionsA quality-control manager found that 30% of work-related problems occurred on Mondays and that 20% occurred in the last hour of a day's shift. It was also found that 4% of worker-related problems occurred in the last hour of ...What is the conditional probability of “high income,” given “never”? A survey carried out for a supermarket classified customers according to whether their visits to the store are frequent or infrequent and whether they often, sometimes, or never purchase generic products. The accompanying ...A campus student club distributed material about membership to new students attending an orientation meeting. Of those receiving this material 40% were men and 60% were women. Subsequently, it was found that 7% of the men ...The sample space contains 5 As and 7 Bs. What is the probability that a randomly selected set of 2 will include 1 A and 1 B?
Post your question