SOLUTION: According to the "January theory," if the stock market is up for the month of January, it will be up for the year. If it is down in January, it will be down for the year. According

Algebra ->  Probability-and-statistics -> SOLUTION: According to the "January theory," if the stock market is up for the month of January, it will be up for the year. If it is down in January, it will be down for the year. According      Log On


   

Question 1118193: According to the "January theory," if the stock market is up for the month of January, it will be up for the year. If it is down in January, it will be down for the year. According to an article in The Wall Street Journal, this theory held for 32 out of the last 37 years. Suppose there is no truth to this theory; that is, the probability it is either up or down is 0.50.

What is the probability that this could occur by chance? (Round the final answer to 4 decimal places.)
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
This is 37C32*(1/2)^32*(1/2)^5, or 37C32*(1/2)^37=435897*0.000003 or 0.0000