Between 1896-when the Dow Jones index was created- and 2014, the index rose in 67% of the

Question:

Between 1896-when the Dow Jones index was created- and 2014, the index rose in 67% of the years. M. Hulbert, "What the Past Can't Tell Investors," The New York Times, January 3, 2010, p. BU2 and bit.ly/100zwvT. Based on this information, and assuming a binomial distribution, what do you think is the probability that the stock market will rise

a. Next year?

b. The year after next?

c. In four of the next five years?

d. In none of the next five years?

e. For this situation, what assumption of the binomial distribution might not be valid?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...