An antique collecter has been following the price of a certain old camera and he found out that the camera's price changes each day and it can either rise or fall in value. The price changes per day are assumed to be independent events. After observing the price for 8 months, he found out that the price rose for 40% of the days and it sunk for the rest. He wants to determine the probability that the camera will be a certain value on a particular day so he asked you for help. 1) What distribution does this problem follow? (G
An antique collecter has been following the price of a certain old camera and he found out that the camera's price changes each day and it can either rise or fall in value. The price changes per day are assumed to be independent
1) What distribution does this problem follow? (Geometric, Binomial, Poission?)
2) Determine the probability that 7 days from now, the cost of the camera will be the same as it is today.
3) Determine the probability that the camera's cost has increased from its current value after 5 days.
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