Reference no: EM132723046

Problem 1: A firm uses trend projection and seasonal factors to simulate sales for a given time period. It assigns "0" if sales fall, "1" if sales are steady, "2" if sales rise moderately, and "3" if sales rise a lot. The simulator generates the following output.

0 1 0 2 2 0 0 1 2 3 2 0 2 0 2 2 1 2 3 1 2 2 2 0 3 0 0 2 1 2 1

Estimate the probability that sales will rise moderately.

Option 1: 0.633

Option 2: 0.312

Option 3: 0.452

Option 4: 0.419

Problem 2: A coin is flipped and the results recorded:

H T H H T T T H

Estimate the probability that a heads will occur on the next flip.

Option 1: 0.25

Option 2: 0.5

Option 3: 0.75

Option 4: 0.33