Probability of stock market

Reference no: EM1399599

Over the 48 years from 1950 through 1997, the stock market has gone up in the month of January for 31 times; it has gone up for the whole year for 36 times, and it has gone up both for the year and in January for 29 times.

1) Based on historical data, what is the probability the stock market will go up in January?

2) Based on historical data, what is the probability the stock market will go up for the whole year?

3) What is the conditional probability that the stock market wil go up for the year given the stock market has already gone up in the month of January?

4) Are the stock market's January performance and its annual performance independent events? What is the meaning of this conclusion to a financial analyst? Please use statistical analysis (not simple verbal narration!) to justify your answer.

Reference no: EM1399599

Questions Cloud

How numerous japanese yen does one us dollar buy right now : How numerous Japanese yen does one US dollar buy right now? Find the existing foreign exchange rate for the yen in the Wall Street Journal or if you are using Internet sources, on the Bloomberg, WSJ, Yahoo Financial or another financial informatio..

Calculations of bayes theorem : Experience has shown a company that the cost of delivering a small package within 24 hours is $14.80. The company charges $15.50 for shipment but guarantees to refund the charge if delivery is not made within 24 hours.

Determine the percent yield for the reaction : Determine the percent yield for the reaction and also find out at which point the total pressure = 188 torr.

What management or financial considerations to be considered : What would be their top first international market (country or region) possibility and why? What management or financial considerations would need to be considered?

Probability of stock market : Over the 48 years from 1950 through 1997, the stock market has gone up in the month of January for 31 times; it has gone up for the whole year for 36 times, and it has gone up both for the year and in January for 29 times.

Explain strongest of multiple intelligence : Perform online research regarding strongest of your multiple intelligences. If you recognized more than one intelligence, select one.

Types of decisions that do not involve uncertainty : Describe the types of decisions that do not involve uncertainty and risk and common approaches used for analyzying them.

Calculate the average cost : Alyssas Custom cakes currently sells 4 birthday, 1 wedding and 2 specialty cakes each month for $55, $155, and $105 each, respectively. Alyssas current multifactor productivity ratio is 1.35.

Explain reverence to the danger jolly had : Ira shops in a Jolly Mart store Induced by a display Ira takes an item to observe it and, when he is done, places it on the floor. Kris a consumer induced by the same display doesn't see the item on the floor trips over it

User Account

All Pages