Binomial distribution and forecast

Reference no: EM13102752

1. On any given day, about 45% of the stocks on the American Stock Exchange increase in value. A random sample of four independent stocks is chosen. Assuming a binomial distribution, what is the probability that at least one of the four stocks increase in value?

a. 3675

b. 6090

c. 0915

d. 3675

e. 9085

2. Using the decision table below determine the most you would pay for a highly reliable forecast.

S1=.20 S2=.60 S3=.20

D1 500 300 -400

D2 600 200 200

D3 -100 -300 900

a. 140

b. 200

c. 420

d. 350

e. 280

Reference no: EM13102752

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