Probability

CFA Level I
#1

65% chance that prices will go up. What is the possibility of prices going up in 3 days out of a week? a. 23.5 b.1.8 c. 42.3 d. 76.5

#2

7C3*(0.65)^3*(0.35)^4 =

#3

14.42% ?

#4

how many ways you can get 5 day’s combination with 3 ups?? UUUDD UUUUU UDUUU UDDUU etc… use binomial theoram thunder is right… i had forgotten the formula, except i see the formual should be 5C3(.65^3)*(.35^2)

#5

are we assuming 7 business days, or 5 business days. why is there ambiguity?

#6

i tried both 7 and 5 but none of them are working i don’t have the answer though

#7

I get 22.75%

#8

also is the question saying *atleast* three days,or EXACTLY three days.