Starting at some fixed time, let F(n) denotes the price of a First Local Bank share at the end of n additional weeks, n ≥ 1; and let the evolution of these prices assumes that the price ratios F(n)/F(n − 1) for n ≥ 1 are independent and identically distributed lognormal random variables. Assuming this model, with lognormal parameters µ = 0.012 and σ = 0.048, what is the probability that the price of the share at the end of the four weeks is higher than it is today?
Starting at some fixed time, let F(n) denotes the price of a First Local Bank share at the end of n additional weeks, n ≥ 1; and let the evolution of these prices assumes that the price ratios F(n)/F(n − 1) for n ≥ 1 are independent and identically distributed lognormal random variables. Assuming this model, with lognormal parameters µ = 0.012 and σ = 0.048, what is the probability that the price of the share at the end of the four weeks is higher than it is today?
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter4: Exponential Functions
Section4.4: Modeling Nearly Exponential Data
Problem 3E: Special Rounding Instructions For this exercise set, round all regression parameters to three...
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Starting at some fixed time, let F(n) denotes the price of a First Local Bank share at the end of n additional
weeks, n ≥ 1; and let the evolution of these prices assumes that the price ratios F(n)/F(n − 1) for n ≥ 1
are independent and identically distributed lognormal random variables. Assuming this model, with lognormal
parameters µ = 0.012 and σ = 0.048, what is the probability that the price of the share at the end of the four
weeks is higher than it is today?
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