In: Statistics and Probability
An investor has two stocks: stock A and stock B. Each stock may
increase in value, decrease in value, or remain unchanged. Consider
the experiment of investing in the two stocks and observing the
change (if any) in value.
a. Construct a tree diagram for this experiment.
b. Use the tree diagram to construct the sample space for this
experiment.
c. If possible, calculate the probability that at least one of the
stocks will increase in value.
If not possible, clearly explain why not.