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The price of a share of a particular stock listed on the New York Stock Exchange is currently $41. The following probability distribution shows how

The price of a share of a particular stock listed on the New York Stock Exchange is currently $41. The following probability distribution shows how the price per share is expected to change over a three-month period:

Stock Price Change ($) Probability
-2 0.05
-1 0.15
0 0.25
1 0.05
2 0.05
3 0.30
4 0.15

  1. Set up intervals of random numbers that can be used to generate the change in stock price over a three-month period. If required, round your answers to two decimal places.
    Stock Price Change Probability Interval
    -2 0.05 fill in the blank 1 but less than fill in the blank 2
    -1 0.15 fill in the blank 3 but less than fill in the blank 4
    0 0.25 fill in the blank 5 but less than fill in the blank 6
    +1 0.05 fill in the blank 7 but less than fill in the blank 8
    +2 0.05 fill in the blank 9 but less than fill in the blank 10
    +3 0.30 fill in the blank 11 but less than fill in the blank 12
    +4 0.15 fill in the blank 13 but less than fill in the blank 14
  2. With the current price of $41 per share and the random numbers 0.4713, 0.8283, 0.0795 and 0.2089, simulate the price per share for the next four 3-month periods.
    Random Number Price Change Ending Price Per Share
    0.4713 fill in the blank 15 $ fill in the blank 16
    0.8283 fill in the blank 17 $ fill in the blank 18
    0.0795 fill in the blank 19 $ fill in the blank 20
    0.2089 fill in the blank 21 $ fill in the blank 22
    What is the ending simulated price per share? $ fill in the blank 23

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