TABLE 5-11 Subscribers to Investment Advice White Letters Perform Security Transactions at Transactions

question 137

Short Answer

TABLE 5-11
Subscribers to Investment Advice White Letters perform security transactions at the rate of five trades per month.Assume that one of the subscribers performs transactions at this rate and the probability of a transaction for any two months is the same and the number of transactions in one month is independent of the number of transactions in another month.
-Referring to Table 5-11,what is the probability that more than two security transactions will be conducted in one month?

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Definitions:

Operant Conditioning

A learning process in which the consequences of an action determine the likelihood of that action being repeated.

Negative Reinforcer

A stimulus whose removal or avoidance after a behavior increases the likelihood of that behavior being repeated.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Negative Reinforcer

A stimulus which, when avoided or removed after a certain behavior, enhances the probability of that behavior occurring again.