Given the probability of change in the stock values on a regular basis. Day (i) Day(i+1) Probability high high low low high Low High Low value 0.3 0.4 0.2 0.1 The day 1 starts with equal probability for the high and low stock values. When the stock value is high, the probability of me winning the game is 0.7 and 0.3 otherwise. 1 When the stock value is low, the probability of me losing the game is 0.6 and 0.4 otherwise. Predict the probability (the stock value is high on Day 2 / winning on Day 2). Apply the Hidden Markov chain rule and Predict the probability (the stock value is high on Day 3/ winning on Day 3).
Given the probability of change in the stock values on a regular basis. Day (i) Day(i+1) Probability high high low low high Low High Low value 0.3 0.4 0.2 0.1 The day 1 starts with equal probability for the high and low stock values. When the stock value is high, the probability of me winning the game is 0.7 and 0.3 otherwise. 1 When the stock value is low, the probability of me losing the game is 0.6 and 0.4 otherwise. Predict the probability (the stock value is high on Day 2 / winning on Day 2). Apply the Hidden Markov chain rule and Predict the probability (the stock value is high on Day 3/ winning on Day 3).
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:Q. 3
Given the probability of change in the stock values on a regular basis.
Day (i) Day(i+1) Probability
value
high
high
high
Low
High
Low
0.3
0.4
low
0.2
low
0.1
The day 1 starts with equal probability for the high and low stock values. When the
stock value is high, the probability of me winning the game is 0.7 and 0.3 otherwise.
1
When the stock value is low, the probability of me losing the game is 0.6 and 0.4
otherwise.
Predict the probability (the stock value is high on Day 2/ winning on Day 2).
Apply the Hidden Markov chain rule and Predict the probability (the stock value is
high on Day 3/ winning on Day 3).
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