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(Scenario: Buying Shares)Use Scenario: Buying Shares

question 179

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(Scenario: Buying Shares) Use Scenario: Buying Shares.The probability that Geordie will make a gain is _____% if he invests $1,000 in either Apple or Microsoft.The probability that he will make a gain is _____% if he invests $500 apiece in Apple and in Microsoft. Scenario: Buying Shares
Geordie is considering buying shares in two companies,Apple and Microsoft.If he invests $1,000 in Apple,there is a 40% probability that his investment will be worth only $800 and a 60% probability that it will be worth $1,200 at the end of a year.If he invests $500 in Apple,there is a 40% probability that his investment will be worth $400 and a 60% probability that it will be worth $600 at the end of a year.The corresponding numbers for investment in Microsoft are identical.

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Definitions:

Population Proportion

A measure that describes the percentage of a specific characteristic in a population.

Z-test

An analysis technique that evaluates the difference in means between two populations with known variances and substantial sample sizes.

Nominal Data

Data categorized without a natural order or ranking, distinguished merely by name.

Binomial Experiment

A statistical experiment that adheres to the following criteria: fixed number of trials, only two possible outcomes, constant probability of success, and independence between trials.

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