Calculate the price of a particular stock

Assignment Help Basic Statistics
Reference no: EM131642088

Question: Suppose you believe that the price of a particular stock goes up each day with probability p and goes down with probability 1-p. You also believe the daily price changes are independent of one another. However, you are not sure of the value of p. Based on your current information, you believe p could be 0.40, 0.45, 0.50, or 0.55, with probabilities 0.15, 0.25, 0.35, and 0.25, respectively. Then you watch the stock price changes for 25 days and observe 12 ups and 13 downs. Use Bayes' rule to find the posterior distribution of p. Based on this posterior distribution, calculate the probability that there will be at least 15 ups in the next 30 price changes.

Reference no: EM131642088

Questions Cloud

Heritage attractions and commercial attractions : Explain the similarities and differences between heritage attractions and commercial attractions. Provide examples to illustrate your points.
How are community health programs like p.a.c.e : How are community health programs like P.A.C.E. helping our seniors, and SAMHSA helping those with mental health and drug abuse conditions?
Rapid economic development of poorer countries : Do you believe the rapid economic development of poorer countries helps or hurts the environment? Why?
Which is not one of the component of criminal justice system : Which of the following is not one of the components of the criminal justice system? Police opposition to civilian review boards occurs because.
Calculate the price of a particular stock : Suppose you believe that the price of a particular stock goes up each day with probability p and goes down with probability 1-p.
Most benefit from their contributions : Explain four strategies that businesses can use to help them get the most benefit from their contributions.
Discuss system security as listed under system requirements : Discuss “System Security” as listed under “System Requirements/Features”.
Describe how companies can target their corporate : Describe how companies can target their corporate contributions strategically to meet the needs of the recipient while satisfying business goals and objectives.
Discuss abnormal left ventricular ejection fraction : On the echocardiography during the ETT you notice the following change: abnormal left ventricular ejection fraction

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd