7. Assume that the number of shares of a stock market in the UK bought over time follows a Poisson distribution with a rate à = 12 per minute. 1) How many minutes will it take for 36 shares to be bought with a probability of at least 94.8%? Denote by n this minimum number of minutes. 2) Calculate the average waiting time for 40 shares to be purchased. 3) Let's assume that same stock is also sold on a stock market in the US. We assume that, on the US market, the number of its shares bought in time also follows a Poisson process but with a rate of u = 8 per minute. Calculate the probability that the total number of shares (bought in the two markets combined) in n minutes is greater than 72.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
Do part c
7. Assume that the number of shares of a stock market in the UK bought over time
follows a Poisson distribution with a rate A = 12 per minute.
1) How many minutes will it take for 36 shares to be bought with a probability
of at least 94.8%? Denote by n this minimum number of minutes.
2) Calculate the average waiting time for 40 shares to be purchased.
3) Let's assume that same stock is also sold on a stock market in the US. We
assume that, on the US market, the number of its shares bought in time also
follows a Poisson process but with a rate of µ = 8 per minute. Calculate
the probability that the total number of shares (bought in the two markets
combined) in n minutes is greater than 72.
Transcribed Image Text:7. Assume that the number of shares of a stock market in the UK bought over time follows a Poisson distribution with a rate A = 12 per minute. 1) How many minutes will it take for 36 shares to be bought with a probability of at least 94.8%? Denote by n this minimum number of minutes. 2) Calculate the average waiting time for 40 shares to be purchased. 3) Let's assume that same stock is also sold on a stock market in the US. We assume that, on the US market, the number of its shares bought in time also follows a Poisson process but with a rate of µ = 8 per minute. Calculate the probability that the total number of shares (bought in the two markets combined) in n minutes is greater than 72.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman