34% that a stock investement will end up in a total loss what is the chance that 1 of 3 investments ends up in a total loss?
34% that a stock investement will end up in a total loss what is the chance that 1 of 3 investments ends up in a total loss?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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34% that a stock investement will end up in a total loss what is the chance that 1 of 3 investments ends up in a total loss?
Expert Solution
Step 1
It is given that,
34% that a stock investment will end up in a total loss.
It means that the probability that the stock investment will end up in a total loss is equal to the 34% = p= 0.34
We have a total of 3 investments i.e. n=3
Let us define X be a random variable which is used to denote the number of investments ends up in a total loss. Then,
X~Bin(n=3,p=0.34)
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