I have an interesting math question. Can someone point me in the right direction.?

Question

an investor selects ten stocks from different industry sectors on the basis that they will move independently over in the next year. On past experience, there is a 20% chance that any one stock will decline over the next year. What is the chance that four or more of the stocks fall in price over the next year?


Don't answer. I just want to remember what field of mathematics to use.

By the way I love math and I wish I were back in college learning it.

Answer 1

Statistics... the most annoying math of all

Answer 2

Normally I would say probability and statistics, but I know from sad experience that the probability you seek is 1.000. I think the branch of math that deals with the stock market is called Ouija, or something like that. . . .

Answer 3

This is a probability/statistics question. I won't answer it but I will give you a hint - use the Binomial distribution.

Math (and Stats) Rule!

Answer 4

If you flip one quarter, you have a fifty percent chance of heads. If you flip it again, you have twentyfive percent chance. You multiply them times each other...A third quarter that shows heads would be one eighth of a chance...

Answer 5

(x > or equal to 4) = (n k) p^k(1-p)^(n-k)
(x > or equal to 4) = (10 4) (.2)^(4)(.8)^(10-4)
on the graphing calculator you go to 2nd dist., binomcdf(10,.2,4) and you should get your answer.
the answer is .967 or 96.7%

Answer 6

what you need is probability (not statistics for this one really).

Use the binomiel distribution.

Answer 7

I think it's probability, good luck solving it.