A firm uses trend projection and seasonal factors to simulate sales for a given time period. It assigns "0" if sales fall, "1" if sales are steady, "2" if sales rise moderately, and "3" if sales rise a lot.
The simulator generates the following output. $\begin{array}{llcc}
0&1&1&2&0&0&1&1&0&3&2&1&0&1&0&2&1&2&3&1&2&0&2&0&3&1&0&2&1&0&1
\end{array}$

Estimate the probability that sales will remain steady.
A) 0.412
B) 0.125
C) 0.419
D) 0.355

Question

A firm uses trend projection and seasonal factors to simulate sales for a given time period. It assigns "0" if sales fall, "1" if sales are steady, "2" if sales rise moderately, and "3" if sales rise a lot.
The simulator generates the following output. $\begin{array}{llcc}
0&1&1&2&0&0&1&1&0&3&2&1&0&1&0&2&1&2&3&1&2&0&2&0&3&1&0&2&1&0&1
\end{array}$

Estimate the probability that sales will remain steady.
A) 0.412
B) 0.125
C) 0.419
D) 0.355

Quizplus · Accepted Answer

The Answer of A firm uses trend projection and seasonal factors to simulate sales for a given time period. It assigns "0" if sales fall, "1" if sales are steady, "2" if sales rise moderately, and "3" if sales rise a lot.
The simulator generates the following output. $\begin{array}{llcc}
0&1&1&2&0&0&1&1&0&3&2&1&0&1&0&2&1&2&3&1&2&0&2&0&3&1&0&2&1&0&1
\end{array}$

Estimate the probability that sales will remain steady.
A) 0.412
B) 0.125
C) 0.419
D) 0.355