Question

In: Statistics and Probability

Hello I have a data set of stock price from previous year. I want to know...

Hello I have a data set of stock price from previous year. I want to know the probability of stock price to be more than a certain value after x days starting from where the dataset ends. Which way do i need to approach. I thought of logistic regression, if its correct what do i need to do to move forward. Thank you!

Solutions

Expert Solution

Solution: The given data would follow Normal Distribution. So to find the probability it would be better to use Normal distribution.

We need to follow the below steps to get the probability of stock price to be more than a certain value

1. The first step will be to find the mean and standard deviation of given data.

2. Find the z score value for the using the below formula:

  

3. Find using the standard normal table. This probability will be answer.


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