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Stocks - Binomial Probability

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Certain stocks are recommended each month by a monthly magazine. If 40% of the stocks recommended advance at least 20%, what is the probability that of the five stocks most recently recommended, at least three will advance at least 20%? Please explain each step.

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A clear step-by-step solution regarding stocks and binomial probability is provided.

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This is a question on binomial probability.

Proportion of successes = p = 40% = 40/100 = 0.40

Proportion of failures = q = 1 - p = 1 - 0.40 = 0.60

n ...

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