SOLUTION: the increase and the decrease in the price of stock between the beginning and the end of a trading day is considered to be an equally and random event. What is the probability that
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Question 1166117: the increase and the decrease in the price of stock between the beginning and the end of a trading day is considered to be an equally and random event. What is the probability that a stock price will show and increase at closing 5 days in a row?
This shows answered by another tutor but he did not show his work so I have no idea how he came up with his answer . Also the answer was for 3 days and im working with 5 days. Answer by ikleyn(52798) (Show Source):
From the condition, it is with equal probability of the difference is positive or negative.
In other words, it is with equal probability of we will have increase or decrease in closing every day.
The probability to have INCREASE at closing 5 days in a row is THUS = . ANSWER
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