An investor tells you that in her estimation there is a 60% probability that the Dow Jones

Question:

An investor tells you that in her estimation there is a 60% probability that the Dow Jones Industrial Average’s index will increase tomorrow.
a. Which approach was used to produce this figure?
b. Interpret the 60% probability.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Statistics For Management And Economics Abbreviated

ISBN: 9781285869643

10th Edition

Authors: Gerald Keller

See More Books

Question Posted: Feb 03, 2015 08:16 AM

See More Questions

The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1991-2010: Develop a trend line and use it to predict the opening DJIA index value...
In February 2009, the Dow Jones Industrial Average was at a level of about 8,000. In February 2013, it was about 14,000. Would you expect the Dow in 2013 to be more or less likely to move up or down...
In February 2009, the Dow Jones Industrial Average was at a level of about 8,000. In January 2016, it was about 17,150. Would you expect the Dow in 2016 to be more or less likely to move up or down...
The data in the chart below is for the distance (in cm) to the near point, the point nearest the eye at which the eye can accurately focus, at a persons age. Age (years) Near Point (cm) 10 7.5 20 9...
Explain the key differences between business level and corporate level strategies. What kinds of management skills does each require?
A Pew Poll in November 2011 showed that 1241 out of 2001 randomly polled people favor the death penalty for those convicted of murder. a. Test the hypothesis that more than half of people favor the...
Assume that $y_{i j}$ are i.i.d and follow a normal distribution with variance $\sigma^{2}$. Under the null hypothesis that a factorial effect 0 , a. Show that \[\frac{\bar{y}_{+}-\bar{y}_{-}}{s / 2}...
Create a spreadsheet to calculate your projected total costs, total revenues, and total profits for giving a seminar on cost estimating. Below are some of your assumptions: You will charge $600 per...
Bank Alpha has given out a pool of mortgages with principal amount of $13 million. These mortgages have an average maturity of 22 years and a monthly mortgage payment of 7 per cent per annum. (Assume...
Nike hit the ground running in 1964. Originally known as Blue Ribbon Sports, the company focused on providing high-quality running shoes designed for athletes by athletes. Founder Philip Knight...
A quiz contains a multiple-choice question with five possible answers, only one of which is correct. Astudent plans to guess the answer because he knows absolutely nothing about the subject. a....
The manager of a computer store has kept track of the number of computers sold per day. On the basis of this information, the manager produced the following list of the number of daily sales. Number...
Copy and complete the table of ratios for similar polygons. Ratio of corresponding side lengths 6:11 Ratio of perimeters ? Ratio of areas ?
Is it sensible to maintain the criminal prohibitions against illicit drugs, or should these substances be legalized, carefully regulated, and their abuse dealt with through other means?
True or false; explain your answer: If all teams are of equal quality, it doesnt matter whether they share gate receiptsrevenue will remain unchanged.
Police observed an automobile traveling at a high rate of speed and swerving on the road. They gave pursuit and stopped the vehicle after a five-minute chase. The driver, later identified as Jerome...
Is requiring a person suspected of driving while intoxicated to submit to a blood-alcohol test a violation of the Fifth Amendment prohibition against compulsory self-incrimination?
A male who is aware that he has been diagnosed with acquired immunodeficiency syndrome (AIDS) engages in sexual intercourse with a female. He does not inform the female that he has AIDS. As a result,...
We can get an accurate idea of the error in centered finite differences by studying the solution to an exactly solvable problem and directly calculating the error in the finite difference...
During the year land was revalued and the surplus reported as Revaluation surplus; and an asset costing 80,000, written down to 38,000, was sold for 40,000. Identify the cost of any non-current...
Two sinusoidal waves travel along the same string. Their time-dependent wave functions are \[\begin{aligned} & f_{1}(x, t)=a \sin \left(b x-q t-\frac{1}{4} \pi ight) \\ & f_{2}(x, t)=a \sin \left(b...
Here is another density function. F(x) = .40 0 < x < 1 = .05 1 < x < 13 a. Determine the probability that X is less than 8. b. What is the probability that X lies between .4 and 10?
The following density function describes the random variable X. F(x) = .10 0 < x < 2 = .20 2 < x < 5 = .15 5 < x < 6 = .05 6 < x < 7 a. Calculate the probability that X is less than 5.5. b. Calculate...
The following density function describes the random variable X. f(x) = .40 .10x 0 < x < 4 = .10x .40 4 < x < 6 a. What is the probability that X is less than 2? b. Find the probability that X is...
Siran plans to contribute $850 at the start of every half year to an investment that ears 7% compounded monthly. If Siran starts contributing on his 37th birthday, how much will he accumulate by his...
Milwaukee Insurance Company (MIC) has entered into a four-year plain vanilla swap with a counterparty. The notional principal is $80 million. MIC will pay payments based on a floating rate of the...
Newton Bay is a sparsely populated area. The government plans to build an international airport there and announces this plan publicly. When hotel chains learn about the airport, they become...

An investor tells you that in her estimation there is a 60% probability that the Dow Jones

Question:

Step by Step Answer:

a Subjective approach b Th...View the full answer

Statistics For Management And Economics Abbreviated

Students also viewed these Statistics questions