SOLUTION: Detailed analysis of two technology stocks indicates over the next six months the probability that the price of stock 1 will rise is 0.25 and for stock 2 the probability is 0.63. S

Algebra.Com
Question 1182141: Detailed analysis of two technology stocks indicates over the next six months the probability that the price of stock 1 will rise is 0.25 and for stock 2 the probability is 0.63. Suppose the stock prices react independently. What is the probability that both stock prices will rise over the next six months? Round your answer to 4 decimal places
Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.

Since the events are independent, the probability of the combined event is the product of the probabilities 


of separate events.    P = 0.25*0.63 = 0.1575.    ANSWER

Solved.


RELATED QUESTIONS

Q1 :A financial analysis of Microsoft, Apple and Nvidia stocks indicates that over the... (answered by Boreal)
Norman and Suzanne own 39 shares of a fast food stock and 71 shares of a toy company... (answered by jorel555)
Norman and Suzanne own 28 shares of a fast food restaurant stock and 68 shares of a toy... (answered by ikleyn)
Norman and Suzanne own 39 shares of a fast-food restaurant stock and 69 shares of a toy... (answered by ikleyn)
A stock's price is expected to vary between $10 and $20 over the next 6 months. It... (answered by Theo)
Assume the probability of any stock chosen at random having a return over 10% in one year (answered by edjones)
A Financial Analysis has been studying the Mean Corporation and has decided that the... (answered by venugopalramana)
Norman and Suzanne own 33 shares of a fast food restaurant stock and 67 shares of a toy... (answered by checkley77)
Norman and suzanne own 37 shares of a fast food restaurant stock and 71 shares of a toy... (answered by TimothyLamb)