An analyst has been studying a particular stock and has come to the following two conclusions the

Question

An analyst has been studying a particular stock and has come to the following two conclusions:

  • the

probability that the stock will rise on a particular day is 0.3

  • the rise or fall of the stock on any particular day is independent of the rise and fall of the stock on any other day
  • Calculate the probability that over the next week (7 days) the number of days that the stock will rise is not 3. Give your answer as a decimal to 2 decimal places.

    Probability =

    [1 mark]-
    Statistics and Probability