Question

In: Statistics and Probability

For 300 trading​ days, the daily closing price of a stock​ (in $) is well modeled...

For 300 trading​ days, the daily closing price of a stock​ (in $) is well modeled by a Normal model with mean

​$196.59

and standard deviation

​$7.14

According to this​ model, what is the probability that on a randomly selected day in this period the stock price closed as follows.

​a) above

​$203.73?

​b) below

​$210.87?

​c) between

​$182.31

and

​$210.87

​d) Which would be more​ unusual, a day on which the stock price closed above

​$210

or below

​$190

Solutions

Expert Solution

a.

b.

c.

d.

The most unusual is the day in which stock proce is closed above 210.

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