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From 1872 to 2000, the stock market rose 74% of the years.             Using this...

  1. From 1872 to 2000, the stock market rose 74% of the years.   

         Using this information and a bionomial distribution, what is the probability that the stock market will rise:

  1.       next year?
  2.       the year after next?
  3.       in four of the next five years?
  4.       in none of the next five years?
  5.       For this analysis, what assumption about the binomial distribution might not be valid?
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Answer #1

ap x: No ot years out ef , stock masket sose, 0.14, 4: 1--0.26 P(x-x) (R) (0.74)(0.26 Year) P(Market sise neet P0.74 P(the ye

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