Suppose 80 Experts Flip a Coin to Predict Whether the Prices

question 57

Multiple Choice

Suppose 80 experts flip a coin to predict whether the prices of stocks will rise or fall for the year. After 4 years, how many experts will have correctly predicted the direction of the stock market?

• A) 13
• B) 8
• C) 33
• D) 5

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Definitions:

Amygdala

A part of the brain involved in emotion regulation, especially fear and pleasure responses.

Fear Response

An immediate alarm reaction triggered by the perception of imminent danger, real or perceived, characterized by physiological changes such as increased heart rate and adrenaline surge.

Dilation of Pupils

The expansion of the pupils of the eyes, which can occur in response to low light conditions or during states of arousal, excitement, or attraction.

Emotional Arousal

A state of heightened physiological and psychological activity including feelings, emotions, and mood changes.