Question
Q1 (25 points): One invests 100 shares of IBM stocks today. He/she expects that there could be five possible opening prices with the respective probabilities
Q1 (25 points): One invests 100 shares of IBM stocks today. He/she expects that there could be five possible opening prices with the respective probabilities at 9:30 a.m. in NYSE the next day. The following table lists these possible opening prices and their respective probabilities: Possible Opening Price of IBM Probability, Pi Outcome 1 $139.29 17% Outcome 2 $142.97 21% Outcome 3 $135.86 33% Outcome 4 Outcome 5 $147.90 13% $144.92 16% Let X variable represent the random opening prices of IBM the next day. Calculate the mean, variance, and the standard deviation of X. Analyze the obtained results and make your pertinent comments. (Keep two decimals) can you do in excel?
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