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 two consecutive days,the market goes in the opposite direction?
A)24%
B)32%
C)48%
D)50%

Question

Quizplus · Accepted Answer

The Answer of 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 two consecutive days,the market goes in the opposite direction?
A)24%
B)32%
C)48%
D)50%

Recent Statistics Show That the Stock Market (As Measured by the TSE