Recent Statistics Show That the Stock Market (As Measured by the TSE

Recent statistics show that the stock market (as measured by the TSE index) goes up in a day about 60% of the time and goes down the other 40% of the time.Statistics also show that if the market goes up one day,then it goes up the next day 70% of the time and down 30% of the time.But if the market goes down one day,then it goes up the next day 80% of the time and down 20% of the time.What is the probability that in two consecutive days,the market goes in the same direction (either up or down) on both days?

A) 62%
B) 52%
C) 50%
D) 42%

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free