Is it proportions or non proportional

A simplified model for the movement of the price of a stock supposes that on each day the stock’s price either moves up 1 unit w

DanielleElmas [232]

Answer:

(a) The probability that after 2 days the stock will be at its original price is

$P_a=2p(1-p)$

(b) The probability that after 3 days the stock’s price will have increased by 1 unit is

$P_b=3p^2(1-p)$

(c) Given that after 3 days the stock’s price has increased by 1 unit, the probability that it went up on the first day is

$P=2/3$

Step-by-step explanation:

(a) What is the probability that after 2 days the stock will be at its original price?

For the price of the stock to be in its original price, there are two ways it can happen:

1) the price increases the first day by one unit and decreases by one unit the second day. The probability of this event is P=p*(1-p).

2) the price decreases the first day by one unit and increases by one unit the second day. The probability of this event is P=(1-p)p.

The probability that after 2 days the stock will be at its original price is the sum of the probability of this two events:

$P=P_1+P_2=p(1-p)+(1-p)p=2p(1-p)$

(b) What is the probability that after 3 days the stock’s price will have increased by 1 unit?

For this event to happen (one unit increase in 3 days), it must have happened 2 increases in price and 1 decrease.

There are 3 possible ways of this to happen:

1) decrease in the first day.

2) decrease in the second day.

3) decrease in the third day.

Each one ot this 3 events has the same probability $P_i=p^2(1-p)$ .

So the probability that after 3 days the stock’s price will have increased by 1 unit is equal to the sum of the probabilities of this events:

$P=P_1+P_2+P_3=3p^2(1-p)$

(c) Given that after 3 days the stock’s price has increased by 1 unit, what is the probability that it went up on the first day?

According to the answer (c), there are 3 events where the price has increase by one unit after 3 days, each one with equal probability $P_i=p^2(1-p)$ .

Of these 3 events, there are 2 that have an increase in the first day. So we can conclude that, if the events have the same probability, the probability of the increase in the first day, given that the price has increased by one unit in 3 days, is P=2/3.

8 0

4 years ago

Is 0.35 grater than 300 mL

Sveta_85 [38]

Answer:

yes

Step-by-step explanation:

yes

6 0

3 years ago

You are making trail mix for your camping trip. You add 2 1/4 cups granola, 5/6 cups of chocolate chips, 1/2 cups of almonds, 1

lesya692 [45]

Answer: The mixed number is 5 5/8 cups of trail mix.

Step-by-step explanation:

Find the least common multiple of 4, 6, 2, 8, and 3, which is 24.
Convert the fractions so they have 24 as their denominator.

2 1/4 ; 9/4 = 54/24
5/6 = 20/24
1/2 = 12/24
1 3/8 ; 11/8 = 33/24
2/3 = 16/24

3. Add the numerators, 54 + 20 + 12 + 33 + 16. 54 +16 = 70. 70 + 20 = 90. 90 + 12 = 102. 102 + 33 = 135.

4. The improper fraction is 135/24. Simplify it by 3 on both numerator and denominator which results in 45/8. 45/8 as a mixed number is 5 5/8 since 8 goes into 45, 5 times and the remainder is 5, which results the denominator to be 8.

8 0

4 years ago

Y’all please help me with this I don’t understand

lakkis [162]

Answer: x=12

Step-by-step explanation:

3 0

3 years ago

(5,1) and (2,3) in point-slope form

Eva8 [605]

Answer:

y-1=-2/3(x-5)

Step-by-step explanation: You have to use slope formula to find the slope, Then you use the first set of points because it have to be x1

5 0

3 years ago

Is it proportions or non proportional​

Is it proportions or non proportional