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A stockbroker has a 60 percent probability of success in picking stocks that appreciate. Assume independence. You are investing in 20 securities that he suggested.
A stockbroker has a 60 percent probability of success in picking stocks that appreciate. Assume independence. You are investing in 20 securities that he suggested. Calculate the probability that
a) 9, 10 or 11 stocks will appreciate
b) that fewer than 14 stocks will appreciate
c) calculate the mean and standard deviation of the number of the stocks that will appreciate
Please use binomial and Poisson distribution as appropriate. If you use R to solve the problem, please include the R script. Thank you!
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