A simplified model for the movement of the price of a stock supposes that on each day the stock's price either moves up 1 unit with probability 0.35 or moves down 1 unit with probability 0.65. The changes on different days are assumed to be independent. What is the probability that after 11 days the stock's price will have increased by exactly 1 units? Give your answer to 4 decimal places.

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.3: Binomial Probability
Problem 2E: If a binomial experiment has probability p success, then the probability of failure is...
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A simplified model for the movement of the price of a stock supposes that on each day the stock's price either moves up 1 unit with probability 0.35 or moves down
1 unit with probability 0.65. The changes on different days are assumed to be independent. What is the probability that after 11 days the stock's price will have
increased by exactly 1 units? Give your answer to 4 decimal places.
Transcribed Image Text:A simplified model for the movement of the price of a stock supposes that on each day the stock's price either moves up 1 unit with probability 0.35 or moves down 1 unit with probability 0.65. The changes on different days are assumed to be independent. What is the probability that after 11 days the stock's price will have increased by exactly 1 units? Give your answer to 4 decimal places.
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