Check your numeracy skills with this simple quiz:
If the probability of the markets going up next week is 50% for
each day in that week, what would be the total probability that
the markets will go up at least on one single day in that week?
a) 0%
b) 50%
c) 75.68%
d) 96.875%
e) 100%
f) 250%
g) none of the above
Answer:
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Plot MetaStock indicator below to check your answer.
MetaStock -> Tools -> Indicator Builder -> New
Copy and paste formula below.
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Probability addition
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{Displays sum of correlated event probabilities
http://www.metastocktools.com }
{ Probability inputs }
per1:=Input("1st probability %",0,100,50)/100;
per2:=Input("2nd probability %",0,100,50)/100;
per3:=Input("3rd probability %",0,100,50)/100;
per4:=Input("4th probability %",0,100,50)/100;
per5:=Input("5th probability %",0,100,50)/100;
per6:=Input("6th probability %",0,100,0)/100;
per7:=0/100; {7th probability %}
{ Probability addition }
probability:=(1-(1-per1)*(1-per2)*(1-per3)
*(1-per4)*(1-per5)*(1-per6)*(1-per7))*100;
{ Plot in own window }
probability
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http://www.metastocktools.com