Binomial Distribution
Not what you're looking for?
A person claims that she is a fortune teller. Specifically, she claims that she can predict tha direction of the change (up or down) in the Dow Jones Industrial Average for the next 10 days (such as U, U, D, U, D, U, U, D, D, D). (You can assume that she makes all 10 predications right now, although that won't affect your answer to the question.) Obviously, you are skeptical, thinking that she is just guessing, so you'll be surprised of her predictions are accurate. Which would surprise you more: (1) she predicts at least 8 out of 10 correctly, or (2) she predicts at least 6 out of 10 correctly on each of 4 separate occasions? Answer by assuming that (1) she really is guessing and (2) each day the Dow is equally likely to go up or down.
Purchase this Solution
Solution Summary
Calculates probability using Binomial Distribution.
Solution Preview
Please see attached file:
A person claims that she is a fortune teller. Specifically, she claims that she can predict tha direction of the change (up or down) in the Dow Jones Industrial Average for the next 10 days (such as U, U, D, U, D, U, U, D, D, D). (You can assume that she makes all 10 predications right now, although that won't affect your answer to the question.) Obviously, you are skeptical, thinking that she is just guessing, so you'll be surprised of her predictions are accurate. Which would surprise you more: (1) she predicts at least 8 out of 10 correctly, or (2) she predicts at least 6 out of 10 correctly on each of 4 separate occasions? Answer by assuming that (1) she really is guessing and (2) each day the Dow is equally likely to go up or ...
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.