MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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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?

 

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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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