A simplified model for the movement of the prize of a stock supposes that on each day the stock’s price either moves up 1 unit with probability p or it moves down 1 unit with probability 1-p. The changes on different days are assumed independent. Suppose we observe what happens to the price in three days. 1. Write down a table with probability mass function of the net gain in the price of the stock after three days, assuming that p=0.7. Then write the cumulative distribution function. Then calculate the expected value and the standard deviation gain (for example, a stock that goes up the first day, up the second and then down the third has a net gain of 1. Show how you obtain the values in your table.

Q: Top Cutz International Barbershop is a popular haircutting and styling salon . Four barbers work…

A: Poisson distribution is a statistical distribution that shows how many times an event is likely to…

Q: Let X is random variable which represents life time of a certain computer part . X  is exponentially…

A: Given that,  Mean of exponential distribution is  1/λ = 10 So λ = 1/10 X~ exponential(1/10)

Q: Use the following information to answer the next three (3) questions. Regression analysis can be…

A: Provided that the R2 value for the unrestricted model is RUnrestricted2=0.0395 and that for…

Q: The time until the graduates of a department find their first jobs after graduation follows an…

A: Given Data: Let X represent the number of months to find first jobs Mean=8 X~ Exponential (0.125)…

Q: Consider a financial instrument which follows an Arithmetic Brownian Motion with zero drift and…

A: Given  Arithmetic Brownian Motion Drift 0 Volatility 1

Q: Many electronics follow a failure rate described by an exponential probability density function…

A:

Q: etend you are studying a population of birds. You have estimated the variability in population…

A: Here, the question asked to study the population of birds. For the past three years, we have studied…

Q: A time series is a collection of data that Multiple Choice is limited to yearly data is limited to…

A: Given problem Given that   A time series is a collection of data that Ans) records past…

Q: Ten weeks of data on the commodity Futures Index are 7.35, 7.4, 7.55, 7.56, 7.6, 7.52, 7.52, 7.7,…

A: Formula Used: Ft+1=Ft+α(At-Ft)Ft+1=αAt+(1-α)Ft We use second formula to calculate exponential…

Q: The cost of all maintenance for a car during its first year is approximately exponentially…

A:

Q: Q. 3 A service time (in minutes) of post office is exponentially distributed with λ = 0.2. (a)…

A: a) To find the probability that it takes more than 5 minutes to complete the business at the post…

Q: Many electronics follow a failure rate described by an exponential probability density function…

A: Introduction: Denote X as the time to failure of the solar panel of the given make.

Q: Which of the following is a reflected decay function shifted down?

A: Reflected function: reflection along x axis : f(x)→ f(-x) reflection along y axis : f(x)→ -f(x)…

Q: Aaron, Bob, and Carl are the proud owners of Three Brothers Motorcycles. During business hours,…

A: Introduction: It is given that customers arrive at the rate of 0.49 customers per hour.

Q: The life of an electronic controller is distributed lognormally, with the parameters ?′ = 20 and ?′…

A: Given , the parameters  μ = 20 and  σ =10

Q: In a retail store the stock turnover rate of an item is the number of times that the average…

A: Step: 1Sub part:- (a)Given that, clothing store sells a brand shirts each year = 300to replace…

Q: A train is moving 35 m/s to the east. It speeds up to 42 m/s east over the course of 40 seconds.…

A: We will find the acceleration using equation of motion as shown below

Q: Statistics and Probability In a M/M/1 model, the average number of customers in the system is 6, and…

A: Given information is ; Number of customers in the system (Ls)=6 Average waiting time in the queue…

Q: The table to the right classifies a stock's price change as up, down, or no change for both today's…

A:

Q: Determine the cumulative distribution function for the exponential distribution.

A: The distribution of the variable is exponential distribution

Q: Find the probability that a component will fail during a 12-hour shift.

A: Pdf of exponential distribution  f(x)=λe-λx                x>0 Here, λ=0.025

Q: 5. ISE has installed a new air purifying system in all 25 lecture rooms, one per room. Suppose 2 of…

A: Given information: μGood=5λGood=15=0.20μDefective=1λDefective=11=1.0

Q: 4. The probability that Vittorio will wait at least 10 minutes less than Ugo.

A:

Q: According to rainfall data collected by a laboratory during storm events, the precipitation level in…

A: Solution

Q: John the barber rents a very small space that has room for 2 customers only. The time John spends on…

A:

Q: Alice has two identical personal computers, which she never uses at the same time. She uses one PC…

A: Alice has two identical personal computers that she never uses at a same time.The time until either…

Q: T2 #9 Apr 5 Travelers buy their airline ticket X days before the day of the flight, and X has…

A: Exponential distribution: A continuous r.v. X taking non-negative values is said to follow an…

Q: Q1). (a) An M/M/1 queue has five messages in queue and one in service. (i) Show that the interval…

A: In this question, we need to analyze the properties of an M/M/1 queue with five messages in the…

Q: T5.14. Based on previous records, 17% of the vehicles passing through a tollbooth have out-of-state…

A: 17% of the vehicles passing through a tollbooth have out-of-state plates.Table :

Q: Losses have a lognormal distribution with u = 6.9078 and o = 1.5174. Determine the percentage…

A: Given that losses follows lognormal distribution with μ=6.9078 and σ=1.5174.

Q: Determine the null and alternative hypotheses for the test. Choose the correct answer below. O A.…

A: The row and column total have been calculated and they are shown below:   Up (Previous) No Change…

Q: (c) Use the cdf from (b) to determine the probability that headway exceeds 2 sec. (Round your answer…

A: Let X be the random variable that the time headway.  The pdf of X is,  f(x)=11x12, x>1 The cdf of…

Q: It was found that one tree had died and thA study has been conducted to study the growth performance…

A: if researcher can study only 2 factor

Q: Q. Annual depth of precipitation X (cm) is assumed to be lognormally distributed with A-50, a=10.…

A: X: annual depth of precipitation in cm X follows log-normal distribution with μX=50 and σX=10

Q: n COA Three couples and two single individuals have been invited to an investment seminar and have…

A: Three couples and two single individuals have been invited to an investment seminar and have agreed…

Q: 2. The probability that both will catch the bus within 15 minutes, given they are still waiting…

A:

Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.