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 three consecutive days,the market goes in the same direction (either up or down) on each day?

A) 35.1%
B) 31.0%
C) 28.4%
D) 28.0%

Correct Answer:

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