Concept explainers
a.
To find: The possible values after two days and the
a.
Explanation of Solution
Given:
Amount spent on hot stock = $ 1000
Probability of each stock = 0.5
Gain is 30%
Loss is 25%.
Calculation:
The value of the stock on the first day can be calculated as:
The value of the stock on the second day can be calculated as:
The probability of each outcome is:
One value outcome has the value above $1000, that is, $1690. Thus, the required probability is 0.25.
b.
To find: The
b.
Answer to Problem 68E
The mean is $1050.625.
Explanation of Solution
Calculation:
The mean of the stock after two days can be computed as:
Thus, the required mean value is $1050.625.
Chapter 6 Solutions
The Practice of Statistics for AP - 4th Edition
Additional Math Textbook Solutions
Elementary Statistics (13th Edition)
Statistical Reasoning for Everyday Life (5th Edition)
Fundamentals of Statistics (5th Edition)
An Introduction to Mathematical Statistics and Its Applications (6th Edition)
Statistics: The Art and Science of Learning from Data (4th Edition)
Statistics for Business and Economics (13th Edition)
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