An analyst calculates the probability of McGregor stock going up in value for any month as .6
Question:
An analyst calculates the probability of McGregor stock going up in value for any month as .6 and the probability of the same stock going down in any month as .4. Calculate the probability that the stock will go up in value in exactly 7 months during a year. (Assume independence.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
This is a binomial probability problem The binomial distribution model is appropriate here because i...View the full answer
Answered By
Jacob Festus
I am a professional Statistician and Project Research writer. I am looking forward to getting mostly statistical work including data management that is analysis, data entry using all the statistical software’s such as R Gui, R Studio, SPSS, STATA, and excel. I also have excellent knowledge of research and essay writing. I have previously worked in other Freelancing sites such as Uvocorp, Essay shark, Bluecorp and finally, decided to join the solution inn team to continue with my explicit work of helping dear clients and students achieve their Academic dreams. I deliver, quality and exceptional projects on time and capable of working under high pressure.
4.90+
1260+ Reviews
2853+ Question Solved
Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
Question Posted:
Students also viewed these Business questions
-
Using the information from question 43, compute the probability that the stock will go up in at least 7 months during the year. Question 43 An analyst calculates the probability of McGregor stock...
-
13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Using result (8.9), find f(x) when f (x) is (a) x (b) 1/x 5 (c) 1 3x
-
Two yeast strains differing in three linked genes were crossed: A B C a b c. Among the tetrads that were analyzed, one contained the following spores: A B C, A b C, a B c, and a b c. How did this...
-
A new light bulb has an expected life of 18,620 hours, with a standard deviation of 4012 hours. If the hours of life of these bulbs are normally distributed, find the probability that one of these...
-
What are the totals of the debit and credit columns from the sales journal for the month of May? Debit amount: Credit amount:
-
A gas stream containing 40.0mole% hydrogen, 35.0% carbon monoxide, 20.0% carbon dioxide, and 5.0% methane is cooled from 1000C to 10C at a constant absolute pressure of 35.0 atm. Gas enters the...
-
A jewelry store buys small boxes in which to wrap items that they sell. The diagram below shows one of the boxes. Find the lateral area and the surface area of the box to the nearest whole number. 7...
-
Tell whether each of the following is a discrete or a continuous random variable: (a) The number of beers sold at a bar during a particular week (b) The length of time it takes a person to drive 50...
-
What is a Bernoulli trial? Give some examples of a Bernoulli trial related to the binomial distribution.
-
I was working on a trading desk. One year, my team did not make its number, which meant no bonuses and maybe even some of us would be fired. My boss was a good friend of the head of our division so...
-
Construct an 8 0 % confidence interval for the population standard deviation if a sample of size 1 7 has standard deviation s = 1 1 . 8 . Round the answers to at least two decimal places An 8 0 %...
-
Suppose your company introduces a referral incentive for existing customers. Namely, cus- tomers can get a $500 discount on their customer service subscription for each customer lead that they refer...
-
How do chromatin organization and epigenetic modifications, such as DNA methylation, histone modifications, and non-coding RNAs, regulate gene expression patterns and cellular identity, and what are...
-
6. Camel Company uses the FIFO method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 80% complete with...
-
For this nominal and interval data, which graphical methods should be chosen (for example, line, bar chart, run chart)? Why is this the best option? (Please provide reference and bibliographical...
-
Ray Bond, from Problem 1-16, is trying to find a new supplier that will reduce his variable cost of production to $ 15 per unit. If he was able to succeed in reducing this cost, what would the...
-
A firm has the following balance sheet: Assets Cash Accounts receivable Inventory Plant and equipment $ 15,000 150,000 92,000 170,000 $427,000 Liabilities and Equity Accounts payable Long-term debt...
-
Compute the following: a. b. c. d. e. 6! 2! (6-2)!
-
According to a 2019 Bankrate survey, most Americans do not use all of their paid vacation days. The most likely reason cited was that vacations are too expensive. Consider the survey question: How...
-
PC Magazine (December 2019) reported the results of a survey of 1,000 parents of school-age children pertaining to the appropriate age the child should receive his or her first digital device. The...
-
please answer following questions below: The health department provides free health assessments for the local community. The center receives approximately $65,000 in donations a year. Based on the...
-
QUESTION 4 What is the maximum depreciation in 2021 for an automobile driven 100% for business that was acquired on July 2, 2021, for $28,000? Assume the taxpayer elects Section 179 on the automobile...
-
Section X manufactures a product used by many manufacturers. Here are the sales and cost data for the product: Selling price per unit in the middle market: $77 Variable cost per unit: $32 Fixed cost...
Study smarter with the SolutionInn App