Answer:
a) P(x) = 0.67
b) P(y) = 0.67
c) P(x=4) = 0.3325
d) P( x = 0 ) = 0.0039
e) The fact that the rise and fall of the stock market relies on market sentiments violates independence used in Binomial distribution and the years are independent
Step-by-step explanation:
A) The probability that the stock market will rise next year = P(x) = 0.67
assuming next year to be X
B) Probability that the stock market will rise the year after next year
= P(y) = 0.67 and this is because the probability is independent of that of the previous years
C) Probability that the stock market will rise in four of the next five years
= P(x=4) = 0.3325
D) probability that the stock market will rise in none of the next five years
= P( x = 0 ) = 0.0039
E) The fact that the rise and fall of the stock market relies on market sentiments violates independence used in Binomial distribution and the years are independent
