Question

For 300 trading​ days, the daily closing price of a stock​ (in $) is well modeled...

For 300 trading​ days, the daily closing price of a stock​ (in $) is well modeled by a Normal model with mean ​$196.41196.41 and standard deviation ​$7.197.19. According to this​ model, what is the probability that on a randomly selected day in this period the stock price closed as follows.

​a) above ​$203.60203.60​?

​b) below ​$210.79210.79​? ​

c) between ​$182.03182.03 and ​$210.79210.79​?

​d) Which would be more​ unusual, a day on which the stock price closed above ​$208208 or below ​$190190​?

Homework Answers

Answer #1

So stock price closed below 190 is more usual

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