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Question: How many prospects do the crook need initially, so that on the 11th day one person remains to be victimized?

Question: How many prospects do the crook need initially, so that on the 11th day one person remains to be victimized?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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11. A financial crook plans to deceive investors by sending text messages to a group of prospects with prediction of movement of a stock of a particular company daily, before the stock market opens. After 10 consecutive days of correct predictions of the stock, the con artist would call the victim and successfully ask for money to purchase stocks in that company & run off with the money. This scheme is illegal because the con artist does not have the ability to reliably predict the price of any stock. Instead the crook chooses the victim as follows: 1) Text a stock prediction to a group of prospects before the stock market opens. 2) The text to half of the group predicts that the stock will go up, while the text to the other half of the group predicts that the stock will go down. 3) At the end of the day after the market closes, the con artist removes half of the people in the list who received the wrong prediction for the day. 4) The next morning the con artist sends a new text to the remaining people in the list with a new prediction before the market opens – again half of the group gets one prediction and the other half gets the opposite prediction. 5) This process continues for 10 days. 6) On the 11th day, the con artist chooses the remaining people in group who received 10 consecutive days of the right predictions to victimize & steal their money. Question: How many prospects do the crook need initially, so that on the 11th day one person remains to be victimized?
Transcribed Image Text:11. A financial crook plans to deceive investors by sending text messages to a group of prospects with prediction of movement of a stock of a particular company daily, before the stock market opens. After 10 consecutive days of correct predictions of the stock, the con artist would call the victim and successfully ask for money to purchase stocks in that company & run off with the money. This scheme is illegal because the con artist does not have the ability to reliably predict the price of any stock. Instead the crook chooses the victim as follows: 1) Text a stock prediction to a group of prospects before the stock market opens. 2) The text to half of the group predicts that the stock will go up, while the text to the other half of the group predicts that the stock will go down. 3) At the end of the day after the market closes, the con artist removes half of the people in the list who received the wrong prediction for the day. 4) The next morning the con artist sends a new text to the remaining people in the list with a new prediction before the market opens – again half of the group gets one prediction and the other half gets the opposite prediction. 5) This process continues for 10 days. 6) On the 11th day, the con artist chooses the remaining people in group who received 10 consecutive days of the right predictions to victimize & steal their money. Question: How many prospects do the crook need initially, so that on the 11th day one person remains to be victimized?
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