Binomial distribution and write the notation

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Problem: The random walk theory of stocks in the stock market assumes there is a 0.67 chance that an index of stocks will increase in value in any given year. Furthermore, the index in any given year is not influenced by its previous year's performance. Let X be the number of years in which the index increased among the next 10 years time.

Required:

Question 1: Verify that this can be modeled by a binomial distribution and write the notation.

Question 2: What are the possible values of X?

Question 3: Construct a probability distribution table.

Question 4: What are the mean and standard deviation of X?

Reference no: EM132432381

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