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3 years ago

7

The price of a technology stock was $9.83 yesterday. Today, the price fell to $9.70. Find the percentage decrease. Round your an

swer to the nearest tenth of a percent.

1 answer:

Ratling [72]3 years ago

3 0

(9.70-9.83)/9.83 = 1.3% decrease

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Answer:

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Step-by-step explanation:

We have a binomial distribution, since the result of each experiment admits only two categories (success and failure) and the value of both possibilities is constant in all experiments. The probability of getting k successes in n trials is given by:

$P=\begin{pmatrix}n\\ k\end{pmatrix} p^k(1-p)^{n-k}=\frac{n!}{k!(n!-k!)}p^k(1-p)^{n-k}$

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$P=\frac{10!}{2!(10!-2!)}0.01^2(1-0.01)^{10-2}\\P=\frac{10!}{2!*8!}0.01^2(0.99)^{8}\\P=45*0.01^2(0.99)^8=0.42$

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