00:01
Hello, so today i'm going to answer your question about a specific application of two distributions, in this case with the stock market for doing so i divide the question into as your exercise required so the first question is what is the probability that you press you have three up trend values when you have five days they don't talk to be in a row so that's how i know my distribution and you want to have specific amount of success in a number of trials this is the formula that it follows where n is the number of trials x is the specific amount of success you want to measure and p is the probability of a single success.
00:35
So in this case you want to file the probability of three.
00:37
So i replace n, that is five trials, three is a specific value.
00:42
The probability of a single success is 0 .56 and this is the complement is 0 .44.
00:48
After solving this issue, the result is 0 .34, so you have 34 % chances that these kind of behavior, you have three upward trends days over five days.
01:00
And the second one will be that having that you want to have four consecutive days of no down and how you find it is first you need to find the probability of both events.
01:11
So the probability that goes up and the probability that goes the same, that is 0 .8.
01:15
And then you raise it to the number of days and as it is an independent probability moment...