g

Example 3.11 Dow Jones Revisited (Probability) In Example 3.4 we considered the course of the Dow Jones Industrial Average over 2 days and defined four basic putcomes: o, The Dow Jones average rises on both days. o, The Dow Jones average rises on the first day but does not rise on the second day. 0 The Dow Jones average does not rise on the first day but rises on the second day 0. The Dow Jones average does not rise on either day. Suppose that we assume these four basic outcomes are equally likely. In that case what is the probability that the market will rise on at least 1 of the 2 days