Problem 2.Let B(t) represent the change in the price (US dollars) of a barrel of crude oil t days from now. Suppose B(t)follows a Brownian motion with u= 0.01 ando =0.15.1. Find the probability that the price has changed by more than 1 dollar after 5 days.2. Repeat the previous part but for 10 days.3. Given that the price has increased by exactly 1 dollar in the first 7 days, find the conditional probability that itwill be at least another dollar higher after an additional 7 days.

Answered: Image /qna-images/answer/ba417d54-c344-4684-bd22-407926eafd5e.jpg

Answered: Let B(t) represent the change in the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

10.23. Question. An umbrella-shaped island has a population of 499 healthy people. Alice, who is injected with the T-virus, enters the island on day 0. It is known that anyone infected with the T-virus will become a zombie after 24 hours. Assume that the infected (zombies are considered infected) will spread the virus (through biting) and no one on this island can escape from it. The rate of virus transmission is proportional to the product of the number of infected and non-infected. Thus, if x(t) denotes the number of the infected on day t, then dx dt = kx(500 — x). On day 10, it is observed that 20 people are already infected. Answer the following questions. (a) How many zombies are on the island on day 16? (b) On day 20, how many people are infected but not yet turned into a zombie? (c) A rescue boat with 50 available seats is to be sent to the island. What is the earliest day the boat should be sent to ensure it can rescue all survivors (those not infected)?
plot the data points and find a logistic model of the form P(t) - c/1+a*e^-bt what is the value of c and what does c represent year population 1700 .6 1803 1 1928 2 1950 2.5 1960 3 1987 5 2019 7.7 2050 9.7 2100 10.9
Suppose A = 500(1.045)t . Compute dA/dt
Experiment No. 3 Entropy rate Procedure: 1- Input the probability of all events. 2- Input the period of each event. 3- Calculate the source entropy. 4- Calculate the average time. 5- Calculate the source entropy rate. Clc; Mahmoc Clear; Px= [0.65 0.35]; t =[0.2 0.8]; Hx= - sum(px * log2 (px)); t = sum (t*px); Rx =Hx/t;
A researcher is interested in finding out how the past average daily values of the stock prices of a firm A determine the current average daily value of its stock price. Let pt ( measured in dollars) denote the average daily value of the stock price of firm A at time t. The researcher collects data on the average daily values of the stock prices of the last quarter of 2017, i.e., t = 1,2, dots,90 and estimates the following autoregressive model with 1 lag of pt: hat(p)t = 2.48 +.05pt.1bar (R)² = 0.512, SER = 13.14. (1.13) (0.64) The standard errors are given in parentheses. Suppose that the actual average daily value of the stock price on January 2, 2018 was $506.12 and the average daily value of the stock price on December 31, 2017 was $445.12. The forecast error in the estimation of the average daily value of the stock price on January 2, 2018 will be $ (Round your answer to two decimal places.) This is all the info in the question
Is d a (fe5x dx) = e5x dx True False Reset Selection ?

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

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

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

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

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

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

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS