Using the information from question 43, compute the probability that the stock will go up in at

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Using the information from question 43, compute the probability that the stock will go up in at least 7 months during the year.

Question 43

An analyst calculates the probability of McGregor stock going up in value for any month as .6 and the probability of the same stock going down in any month as .4. Calculate the probability that the stock will go up in value in exactly 7 months during a year. (Assume independence.)

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Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

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