9. A k-run of upticks is a sequence of k consecutive stock price increases not contained in any larger such sequence. Show that if N/2 ≤ k < N then the probability of a k-run of upticks in N time periods is p¹ [2q + (N − k − 1)q²].

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.2: Arithmetic Sequences
Problem 68E
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9. A k-run of upticks is a sequence of k consecutive stock price increases not
contained in any larger such sequence. Show that if N/2 ≤ k < N then the
probability of a k-run of upticks in N time periods is
pk [2q + (N − k − 1)q²].
Transcribed Image Text:9. A k-run of upticks is a sequence of k consecutive stock price increases not contained in any larger such sequence. Show that if N/2 ≤ k < N then the probability of a k-run of upticks in N time periods is pk [2q + (N − k − 1)q²].
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