Standard deviation of number of yearly earnings increases

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Reference no: EM132060982

Over the last nine years, a company's annual earnings increased year over year seven times and decreased yoy two times. You decide to model the number of earnings for the next decadeas a binomial variable.

1. What is the probability that the earnings will increase in exactly five of the next nine years?

2. What is the standard deviation of the number of yearly earnings increases during the next nine years?

Reference no: EM132060982

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