Question

Investment advisors agree that​ near-retirees, defined as people aged 55 to​ 65, should have balanced portfolios. Most advisors suggest that the​ near-retirees have no more than​ 50% of their investments in stocks.​ However, during the huge decline in the stock market in​ 2008, 23​% of​ near-retirees had 85​% or more of their investments in stocks. Suppose you have a random sample of 10 people who would have been labeled as​ near-retirees in 2008. Complete parts​ (a) through​ (d) below.

a. What is the probability that during 2008 none had 85​% or more of their investment in​ stocks? The probability is . ​(Round to four decimal places as​ needed.)

b. What is the probability that during 2008 exactly one had 85​% or more of his or her investment in​ stocks? The probability is . ​(Round to four decimal places as​ needed.)

c. What is the probability that during 2008 two or fewer had 85​% or more of their investment in​ stocks? The probability is . ​(Round to four decimal places as​ needed.)

d. What is the probability that during 2008 three or more had 85​% or more of their investment in​ stocks? The probability is . ​(Round to four decimal places as​ needed.)

Answer 1