How do I solve for b-9-b=-18
1 answer:
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Answer:
The probability that after two period we will have the same value of $100 is:
Step-by-step explanation:
We can analyze this situation by cases.
Stock moves up two times
For this case the final value would be:
$100 *1.02*1.02= $104.04
And the probability associated to this event is 0.7*0.7=0.49
Stock moves down two times
For this case the final value would be:
$100 *(1/1.02)*(1/1.02)= $96.117
And the probability associated to this event is 0.3*0.3=0.09
Stock moves up and then down
For this case the final value would be:
$100 *(1.02)*(1/1.02)= $100
And the probability associated to this event is 0.7*0.3=0.21
Stock moves down and then up
For this case the final value would be:
$100 *(1/1.02)*(1.02)= $100
And the probability associated to this event is 0.3*0.7=0.21
So then the probability that after two period we will have the same value of $100 is :
Step-by-step explanation:
The prize is equally likely to have been placed behind doors 1, 2, and 3, so the probabilities of D₁, D₂, and D₃ are equal.
P(D₁) = P(D₂) = P(D₃) = 1/3
The contestant initially chooses door 1, so the host will not open it.
P(H₁|D₁) = P(H₁|D₂) = P(H₁|D₃) = 0
The host will not open the door with the prize.
P(H₂|D₂) = P(H₃|D₃) = 0
The remaining probabilities for each door are equal.
P(H₂|D₁) = P(H₃|D₁) = 1/2
P(H₃|D₂) = 1
P(H₂|D₃) = 1
