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A Company Is Going to Release Four Quarterly Reports This

Question 142

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A company is going to release four quarterly reports this year. Suppose the company has a 32% chance of beating analyst expectations each quarter.
A) What is the probability that the company beats analyst expectations every quarter of this year?
B) What is the probability the company beats analyst expectations more than half the time this year?
C) What is the expected number of times the company will beat analyst expectations this year?

Correct Answer:

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a. 0.0105
...

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