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Some analysts believe that the Dow Jones (DJ) Industrial Average is likely to increase during the US presidential election years. Assuming that this indicator is a random event with no predictive value, find:

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· The probability that the Dow Jones Industrial Average increased in 11 or more of the 14 US presidential election years if the probability of an increase in the DJ Industrial Average is 0.50

 

· The probability that the Dow Jones Industrial Average increased in 11 or more of the 14 US presidential election years if the probability of an increase in the DJ Industrial Average is 0.75

 

· The probability that the Dow Jones Industrial Average increased in 6 or more of the 14 US presidential election years if the probability of an increase in the DJ Industrial Average is 0.50

 

· The probability that the Dow Jones Industrial Average increased in 6 or more of the 14 US presidential election years if the probability of an increase in the DJ Industrial Average is 0.75

Present the answer in Excel output with 5 decimals.

Phyllis Mugure

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