Activity
kmisty_36Suppose you receive an e-mail from a stock broker who claims to be able to accurately predict whether any given stock will rise or fall in price during the subsequent month. To “prove” her claim, she makes a prediction about performance (higher price or lower price) for ten stocks over the next month. You are skeptical of the broker's claim, and assume she simply guesses which stocks will improve or worsen in price over any given month. Put another way, you assume she has a 50% chance of being correct in her prediction for any given stock. Based on this assumption, you derive the following probabilities concerning her ten picks:
Number of correct picks 0 1 2 3 4 5 6 7 8 9 10
Probability 0.001 0.01 0.044 0.117 0.205 0.246 0.205 0.117 0.044 0.01 0.001
- What is the empirically testable conclusion resulting from your deductive reasoning?
- How could you test your empirically testable conclusion using a data sample?
- Outline the inductive and deductive reasoning you could use to evaluate whether or not the broker is simply guessing in her stock picks.
- a year ago
- 7
- Econ ExCEL statistical concepts Project
- RM PH 3 Proj
- Motivational Strategies for Fitness Professionals
- Discuss the circumstances under which a law enforcement officer may withhold the identity of an offender. Include in your discussion when disclosure of an informer's identity maybe required by the courts
- Bhopa, India - Case Study
- Human Resource homework
- Financial 510 – Video Research project:
- paper
- A customer has asked Clougherty Corporation to supply 4,000 units of product M97, with some modifications,
- Suave & Rugged, a manufacturer of personal care products, is launching a new line of male cosmetics