Question
Stock prices. For the 300 trading days from January 11, 2012 to March 22, 2013, the...
Stock prices. For the 300 trading days from January 11, 2012 to March 22, 2013, the daily closing price of IBM stock (in $) is well modeled by a Normal model with mean $197.92 and standard deviation $7.16. According to this model, what is the probability that on a randomly selected day in this period the stock price closed
a) above $205.08?
b) below $212.24?
c) between $183.60 and $205.08?
d) Which would be more unusual, a day on which the stock price closed above $206 or below $180?
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