We want to model the daily movement of a particular stock (say Amazon, ticker = AMZN) using a homogeneous markov-chain. Suppose at the close of the market each day, the stock can end up higher or lower than the previous day’s close. Assume that if the stock closes higher on a day, the probability that it closes higher the next day is .65. If the stock closes lower on a day, the probability that it closes higher the next day is .45.

(a) What is the 1-step transition matrix? (Let 1 = higher, 2 = lower)

(b) On Monday, the stock closed higher. What is the probability that it will close higher on Thursday (three days later)

Answers

Answer 1

Answer:

See the explanation and attached images for the answers.

Step-by-step explanation:

a) 1-step transition matrix:

See the attached image for transition matrix.

Let the matrix be M

if the stock closes higher on a day, the probability that it closes higher the next day is 0.65.

If the stock closes lower on a day, the probability that it closes higher the next day is 0.45

if the stock closes higher on a day, the probability that it closes lower the next day is 1 - 0.65 = 0.35

if the stock closes lower on a day, the probability that it closes lower the next day is 1 - 0.45 =0.55

b)

To compute probability for 3 days later multiply matrix M (from part a) thrice i.e. M*M *M

[tex]M^{3} = \left[\begin{array}{ccc}0.65&0.35\\0.45&0.55\end{array}\right]*\left[\begin{array}{ccc}0.65&0.35\\0.45&0.55\end{array}\right]*\left[\begin{array}{ccc}0.65&0.35\\0.45&0.55\end{array}\right][/tex]

   

[tex]M^{3} = \left[\begin{array}{ccc}0.65 * 0.65 + 0.35 * 0.45 &0.65 * 0.35 + 0.35 * 0.55 \\0.45 * 0.65 + 0.55 * 0.45 &0.45 * 0.35 + 0.55 * 0.55 \end{array}\right] * \left[\begin{array}{ccc}0.65&0.35\\0.45&0.55\end{array}\right][/tex]

[tex]M^{3} = \left[\begin{array}{ccc}0.58&0.42\\0.54&0.46\end{array}\right]*\left[\begin{array}{ccc}0.65&0.35\\0.45&0.55\end{array}\right][/tex]

   

[tex]M^{3} = \left[\begin{array}{ccc} 0.58 * 0.65 + 0.42 x 0.45&0.58 * 0.35 + 0.42 * 0.55 \\0.54 * 0.65 + 0.46 * 0.45 &0.54 * 0.35 + 0.46 * 0.55 \end{array}\right][/tex]

[tex]M^{3} = \left[\begin{array}{ccc}0.566&0.434\\0.558&0.442\end{array}\right][/tex]

The probability that it will close higher on Thursday is 0.566. See the transmission matrix of M³ for higher-higher. This can be interpreted as:

if the stock closed higher on Monday, the probability that it closes higher the on Thursday (three days later) is 0.566

We Want To Model The Daily Movement Of A Particular Stock (say Amazon, Ticker = AMZN) Using A Homogeneous
We Want To Model The Daily Movement Of A Particular Stock (say Amazon, Ticker = AMZN) Using A Homogeneous

Related Questions

A researcher would like to test the claim that the mean lung capacity of middle-aged smokers is less than the mean lung capacity of senior citizen nonsmokers. Independent random samples of 34 middle-aged smokers and 34 senior citizen nonsmokers will be used in a hypothesis test of this claim, and it is believed that the standard deviations of the lung capacities in the populations of middle-aged smokers and senior citizen nonsmokers are the same. Which test statistic formula should be used for this test

Answers

Answer:

The respiratory system extends from the nose and upper airway to the alveolar surface of the lungs, where gas exchange occurs. Inhaled tobacco smoke moves from the mouth through the upper airway, ultimately reaching the alveoli. As the smoke moves more deeply into the respiratory tract, more soluble gases are adsorbed and particles are deposited in the airways and alveoli. The substantial doses of carcinogens and toxins delivered to these sites place smokers at risk for malignant and nonmalignant diseases involving all components of the respiratory tract including the mouth.

Tickets to a school production cost $5 for a student ticket and $10 for an adult ticket. A total of 67 tickets were purchased at a cost of $440. Which value or expression could replace c in the table? 67 440 67 – a 440 – a

Answers

Answer:

Step-by-step explanation:

Keywords:

System of equations, variables, cost, tickets, adults, children.

For this case we must solve a system of equations with two variables represented by the tickets of students and adults of a school production.

We define the variables according to the given table:

a: Number of tickets sold to adults

c: Amount of tickets sold to children.

We then have the following system of equations:

A + c = 67

10a + 5c =440

From the first equation, we clear the value of the variable c:

C = 67 - a

Answer:

The value that could replace c in the table is:

C = 67 - a

Option C is the answer!

Hope it helped u if yes mark me BRAINLIEST!

Tysm! Plz

The answer is c hope it helps

Estimate the line of best fit using two points on the line.
.
10
9
8
7
6
5
(6,8)
(9,6)
N
1 2 3 4 5 6
8 9 10
O A. y-2x+12
O B. y--{x+12
O C. y= O D. y=-3x+12

Answers

Answer:

B. y = -2/3x + 12

Step-by-step explanation:

Formula to find the slope when given two points on a line:

y2 - y1

x2 - x1

Substitute the two given points (6, 8) (9, 6):

6 - 8

9 - 6

Slope = -2/3x

We found the slope! And the answer choices already gave us one y-intercept, which is 12. The last thing we do is we form an equation with the information we solved and that was given to us.

y = slope (x) + y-intercept

y = -2/3x + 12

The answer choice that matches this equation is B.

In conclusion, the equation that best estimates the line of best fit shown above is answer choice B.

An equation of a line with given coordinates is y= -2/3 x+12. Therefore, option B is the correct answer.

What is the equation of a line?

The general equation of a straight line is y=mx+c, where m is the gradient, and y = c is the value where the line cuts the y-axis. This number c is called the intercept on the y-axis.

From the given graph, the coordinate points are (6, 8) and (9, 6).

We know that, the formula to find the slope of a line is slope = (y₂-y₁)/(x₂-x₁).

Here, slope = (6-8)/(9-6)

= -2/3

Substitute m=-2/3 and (x, y)=(6, 8) in y=mx+c, we get

8=-2/3 (6)+c

8=-4+c

c=12

So, equation of a line is y= -2/3 x+12

Therefore, option B is the correct answer.

To learn more about the equation of a line visit:

https://brainly.com/question/2564656.

#SPJ7

On a coordinate plane, a line has points (negative 2, negative 4) and (4, 2). Point P is at (0, 4). Which points lie on the line that passes through point P and is parallel to the given line? Select three options. (–4, 2) (–1, 3) (–2, 2) (4, 2) (–5, –1)

Answers

Answer:

the correct options are:

(–1, 3),  (–2, 2) and (–5, –1)

Step-by-step explanation:

Given that a line passes through two points

A(-2, -4) and B(4, 2)

Another point P(0, 4)

To find:

Which points lie on the line that passes through P and is parallel to line AB ?

Solution:

First of all, let us the find the equation of the line which is parallel to AB and passes through point P.

Parallel lines have the same slope.

Slope of a line is given as:

[tex]m=\dfrac{y_2-y_1}{x_2-x_1}[/tex]

[tex]m=\dfrac{2-(-4)}{4-(-2)} = 1[/tex]

Now, using slope intercept form ([tex]y = mx+c[/tex]) of a line, we can write the equation of line parallel to AB:

[tex]y =(1)x+c \Rightarrow y = x+c[/tex]

Now, putting the point P(0,4) to find c:

[tex]4 = 0 +c \Rightarrow c = 4[/tex]

So, the equation is [tex]\bold{y=x+4}[/tex]

So, the coordinates given in the options which have value of y coordinate equal to 4 greater than x coordinate will be true.

So, the correct options are:

(–1, 3),  (–2, 2) and (–5, –1)

Answer:

b,c,e

Step-by-step explanation:

I got it right on edge

translate this into an expression: the quotient of a number, x, and 8, could you please explain it to me?​

Answers

Answer:

x/8

Step-by-step explanation:

First, we are given "the quotient of...". This means that we are dividing something/something else. If two numbers are given in the phrase "something and something else", the first number given will be the something, and the second number will be the something else.

The first number listed is x. Therefore, we have

x/something else.

Next, we are given "and 8", so we have x/8 as our expression

Find a and b such that ab = 15
and a+b = -8.

Answers

Answer:

a = -3 or -5 and b = -5 or -3

Step-by-step explanation:

a + b = -8

ab = 15

b = 15/a

b = 15/(-3)

b = -5

a(-5) = 15

(-5)a = 15

(-5)/5 = 15/-5

a = -3

a + b = -8

-3 - 5 = -8

-8 = -8

A circular fence is being placed to surround a tree. The diameter of the
fence is 4 feet. How much fencing is used? *

Answers

Answer:

12.6 ft

Step-by-step explanation:

Assume that​ women's heights are normally distributed with a mean given by mu = 64.3 inches​, and a standard deviation given by sigma= 2.2 inches.
A) If a woman is randomly selected, find the probability that her height is less than 65 inches.
B) If 34 women are randomly selected, find the probability that they have a mean height less than 65 inches.

Answers

Answer:69

Step-by-step explanation:

On a coordinate plane, 2 lines are shown. Line A B has points (negative 4, negative 2) and (4, 4). Line C D has points (0, negative 3) and (4, 0). Which statement best explains the relationship between lines AB and CD? They are parallel because their slopes are equal. They are parallel because their slopes are negative reciprocals. They are not parallel because their slopes are not equal. They are not parallel because their slopes are negative reciprocals.

Answers

Answer:

A. they are parallel because their slopes are equal.

Step-by-step explanation:

edge 2020

Answer:

its A in egde

Step-by-step explanation:

someone please help me

Answers

I’m pretty sure is 8.6 ML

This??? What is wrong with it?

Answers

Answer:

15.8 sq. in. of paper will be required.

Step-by-step explanation:

The problem is that a drinking cup does not have a cover, so only the lateral surface area counts.

I.e. We need only the first term.

A = pi r l = pi * 1.5 * sqrt(3^2+1.5^2)

= 15.81 sq. in.

A shopping centre wants to examine the amount of space required for parking. Studies indicated that 50% of staff and shoppers use public transportation. A survey of 1002 was taken, and 483 responded that they used public transportation. At 5% level of significance, is it reasonable to conclude that the survey results indicate a change?

Answers

Answer:

The survey result doesn't indicate the change

Step-by-step explanation:

Previous study result is 50%

Survey result:

483/1002 = 0.482 = 48.2%

Comparing with previous result:

50% - 48.2% = 1.8% < 5%

Since this result is within 5% level of significance, it can be concluded that the survey result doesn't indicate the change

FIND THE VALUE OF NT
PLEASE HELP ASAP :(

Answers

Answer:

NT = 14 units

Step-by-step explanation:

In this question we will apply the theorem of intersecting chords.

Two chords MY and TN are intersecting each other inside a circle at a point H.

Theorem states,

MH × HY = TH × HN

12(x) = 8(x + 2)

12x = 8x + 16

12x - 8x = 16

4x = 16

x = 4

Therefore, measure of chord NT = NH + HT

                                                       = 8 + (x + 2)

                                                       = x + 10

                                                       = 4 + 10

                                                       = 14 units

Brainliest! Jared uses the greatest common factor and the distributive property to rewrite this sum: 100 + 75 Drag one number into each box to show Jared's expression. Brainliest!

Answers

Answer:

25(4 + 3)

Step-by-step explanation:

100 = 2^2 + 5^2

75 = 3 * 5^2

GCF = 5^2 = 25

100 + 75 =

= 25 * 4 + 25 * 3

= 25(4 + 3)

Find an equation in slope-intercept form of the line that has slope –9 and passes through point A(-9,-1)

Answers

Answer:

y = -9x - 82

Step-by-step explanation:

Line with slope m=-9 passing through A(x1, y1) =A(-9,-1)

y-y1 = m(x-x1)

Substitute values

y-(-1) = -9(x-(-9)

y+1 = -9x -81

y = -9x - 82

A certain family has a husband, wife, son, and daughter. All together they are 68 years old. The husband is 3 years older than the wife, and the son is 3 years older than the daughter. Four years ago, all together the family was 54 years old. How old is the husband now?

Answers

Answer:

32 years old

Step-by-step explanation:

The husband is 32 years old as the wife is 3 years younger than the husband. The son is 3 years older than the daughter. Their family altogether total age today is 68 years while 4 years ago their age total was 54 years. The difference is 14 years. If we divide the difference into 4 then the age can not be whole number which means daughter is born after 2 years. She is now 2 years older. Son is 3 years older than the daughter which means he is 5 years old. The husband then must be 32 years old and wife is 3 years younger which means she is 29 years old now.

32 + 29 + 5 + 2 = 68 years.

Let A and B be events. The symmetric difference A?B is defined to be the set of all elements that are in A or B but not both.
In logic and engineering, this event is also called the XOR (exclusive or) of A and B.
Show that P(AUB) = P(A) + P(B)-2P(AnB), directly using the axioms of probability.

Answers

Correction:

P(AΔB) = P(A) + P(B) - 2P(AnB)

is what could be proven using the axioms of probability, and considering the case of symmetric difference given.

Answer:

P(AΔB) = P(A) + P(B) - 2P(AnB)

Has been shown.

Step-by-step explanation:

We are required to show that

P(AUB) = P(A) + P(B) - 2P(AnB)

directly using the axioms of probability.

Note the following:

AUB = (AΔB) U (AnB)

Because (AΔB) U (AnB) is disjoint, we have:

P(AUB) = P(AΔB) + P(AnB)..................(1)

But again,

P(AUB) = P(A) + P(B) - P(AnB)...............(2)

Comparing (1) with (2), we have

P(AΔB) + P(AnB) = P(A) + P(B) - P(AnB)

P(AΔB) = P(A) + P(B) - 2P(AnB)

Where AΔB is the symmetric difference of A and B.

What is the correct answer please I’m stumped

Answers

Answer:

The choose C. 2

[tex]( \frac{4 ^{ \frac{5}{4} } \times 4^{ \frac{1}{4} } }{4 ^{ \frac{1}{2} } } )^{ \frac{1}{2} } = 2[/tex]

Answer:

2

Step-by-step explanation:

inside the parenthesis is equivalent to 4^(5/4 + 1/4 - 1/2) = 4¹ = 4

√4 = 2

At a Noodles & Company restaurant, the probability that a customer will order a nonalcoholic beverage is .50. Find the probability that in a sample of 14 customers, at least 7 will order a nonalcoholic beverage

Answers

For each customer, there are only two possible outcomes. Either they will order an alcoholic beverage, or they will not. The probability of a customer ordering an alcoholic beverage is independent of any other customer, which means that the binomial probability distribution is used to solve this question..

Binomial probability distribution

The binomial probability is the probability of exactly x successes on n repeated trials, and X can only have two outcomes.

[tex]P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}[/tex]

In which [tex]C_{n,x}[/tex] is the number of different combinations of x objects from a set of n elements, given by the following formula.

[tex]C_{n,x} = \frac{n!}{x!(n-x)!}[/tex]

And p is the probability of X happening.

At a Noodles & Company restaurant, the probability that a customer will order a nonalcoholic beverage is .50

This means that [tex]p = 0.5[/tex]

Sample of 14 customers

This means that [tex]n = 14[/tex]

Probability that at least 7 will order a nonalcoholic beverage

This is:

[tex]P(X \geq 7) = 1 - P(X < 7)[/tex]

In which

[tex]P(X < 7) = P(X = 0) + P(X = 1) + P(X = 2) + P(X = 3) + P(X = 4) + P(X = 5) + P(X = 6)[/tex]

Then

[tex]P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}[/tex]

[tex]P(X = 0) = C_{14,0}.(0.5)^{0}.(0.5)^{14} = 0.0001[/tex]

[tex]P(X = 1) = C_{14,1}.(0.5)^{1}.(0.5)^{13} = 0.0009[/tex]

[tex]P(X = 2) = C_{14,2}.(0.5)^{2}.(0.5)^{12} = 0.0056[/tex]

[tex]P(X = 3) = C_{14,3}.(0.5)^{3}.(0.5)^{11} = 0.0222[/tex]

[tex]P(X = 4) = C_{14,4}.(0.5)^{4}.(0.5)^{10} = 0.0611[/tex]

[tex]P(X = 5) = C_{14,5}.(0.5)^{5}.(0.5)^{9} = 0.1222[/tex]

[tex]P(X = 6) = C_{14,6}.(0.5)^{6}.(0.5)^{8} = 0.1833[/tex]

So

[tex]P(X < 7) = P(X = 0) + P(X = 1) + P(X = 2) + P(X = 3) + P(X = 4) + P(X = 5) + P(X = 6) = 0.0001 + 0.0009 + 0.0056 + 0.0222 + 0.0611 + 0.1222 + 0.1833 = 0.3954[/tex]

[tex]P(X \geq 7) = 1 - P(X < 7) = 1 - 0.3954 = 0.6046[/tex]

0.6046 = 60.46% probability that at least 7 will order a nonalcoholic beverage.

For more on the binomial distribution, you can check https://brainly.com/question/15557838

Plot A shows the number of hours ten girls watched television over a one-week period. Plot B shows the number of
hours ten boys watched television over the same period of time.
Which statement correctly compares the measures of center in the two sets of data?
Both the mean and median are greater for Plot A than for Plot B.
* Both the mean and median are greater for Plot B than for Plot A.
Plot A has a greater median than Plot B, but Plot B has a greater mean.
Plot B has a greater median than Plot A, but Plot A has a greater mean.
(It’s not B on edg2020 btw)

Answers

Both the mean and median are greater for plot A than for plot B. This is found by finding the mean and median for each plot and comparing them. Let me know if you need any further explanation!

Answer: Hello I have your Answer

It's A

Step-by-step explanation:

Your welcome

You have a jar containing 55 coins, consisting entirely of nickels and quarters, worth a
total of $7.15. How many quarters are in the jar?

Answers

Answer: 22 quarters

Step-by-step explanation:

Let N be the number of nickels.

Then the number of quarters is (55-N)

The nickels  contribute 5N cents to the total.

The quarters contribute 25*(55-N) cents to the total.

5N + 25*(55-N) = 715

5N + 1375 - 25N = 715

-20N = 715 - 1375 = -660

[tex]N=\frac{-660}{-20}[/tex]

[tex]=33[/tex]

[tex]55-33=22[/tex]

So there is 22 quarters inside the jar.

Check to see if my answer is correct-

33*5 + 22*25 = 715 cents

The double number lines show the ratio of cups to gallons. How many cups are in 333 gallons? _____ cups

Answers

Answer:

5328 cups.

Step-by-step explanation:

Given that 333 gallons

We know that

1 gallons = 16 cups

1 cups = 0.0625 gallons

Therefore,from the above conversion we can say that

Now by putting the values in the above conversion

333 gallons = 16 x 333 cups

333 gallons = 5328 cups

So , we can say that 333 gallons is equal to 5328 cups.

Thus the answer will be 5328 cups.

Answer:

48 cups(BTW he meant 33 galons, IVE had this before). lol you need to put the double number line image. first u have to divide 64/4 to get 16, Then it says "How many cups are in 3 gallons". There fore, U multiply 16 to 3 to get ur answer "48".

The solution system to 3y-2x=-9 and y=-2x+5

Answers

Answer:

[tex]\boxed{(3,-1)}[/tex]

Step-by-step explanation:

Hey there!

Well to find the solution the the given system,

3y - 2x = -9

y = -2x + 5

So to find x lets plug in -2x + 5 for y in 3y - 2x = -9.

3(-2x + 5) - 2x = -9

Distribute

-6x + 15 - 2x = -9

-8x + 15 = -9

-15 to both sides

-8x = -24

Divide -8 to both sides

x = 3

Now that we have x which is 3, we can plug in 3 for x in y = -2x + 5.

y = -2(3) + 5

y = -6 + 5

y = -1

So the solution is (3,-1).

Hope this helps :)

Workbook
WB-21
38. What is the circumference of a circle that has a diameter of 12 inches? (Use
3.14 for 1.)
a. 15.14 inches
b. 37.68 inches
c. 376.8 inches
d. 9.42 inches

Answers

Answer:

37.68

Step-by-step explanation:

Formula for finding the circumference of a circle is C = 2πr

If you substitute the numbers in you should get 37.68.

If Evan does a job in 168 hours and with the help of Emma they can do it together in 56 hours, how long would it take Emma to do it alone?

Answers

Means Evan completes the 1/168 of the job each hour, and together they complete 1/56 each hour. 1/56 = 3/168, so Evan completes 1/168 of the job each hour and Emma completes the other 2/168 (so together they add up to be 3/168). So Emma completes 2/168 = 1/84 of the job per hour if she does it alone. So 84 hour is how long it takes.


A marathon started at 7:30am. The winner took 3hrs and 47
minutes to complete the race and the last person finished 55
minutes later. At what time did the marathon end?​

Answers

Answer:

12:12

Step-by-step explanation:

first add 3 hours to 7:30 which makes it 10:30

then add 47 min and it becomes 11:17

add 55 min to that and its 12:12

30 points!!!!!!!
There are 6 red marbles, 9 blue marbles, and 10 green marbles in a bag.

Several trials are performed with the results shown in the table. What is the experimental probability of randomly drawing a red marble?

Red Blue Green
16 30 34
32%
25%
20%
16%

Answers

Answer:

C. 20%

Step-by-step explanation:

Outcomes with red = 16Total trials = 16 + 30 + 34 = 80P(red) = 16/80 = 1/5 = 20%

Correct choice is C

Answer:

20%

Step-by-step explanation:

80 x 20% = 16 red marbles

If you conducting a test for statistical study and you got outcome with the likelihood of 0.005. Please evaluate outcome.

Answers

Here is the complete question:

a. Statistically significant at 0.01

b. Not statistically significant

Answer:

The test is significant

Step-by-step explanation:

When a p value is smaller than or less than alpha we say it is statistically significant.

We are testing the p value or likelihood of 0005 against a significant level of 0.01

P value = 0.005 < 0.01

0.005 is less than 0.01 which shows the test to be significant.

The decision rule would be to reject the null hypothesis and say the result is statistically significant.

The length of a rectangle is shown below:

On a coordinate grid from negative 6 to positive 6 on the x-axis and on the y-axis, two points A and B are shown. Point A is on ordered pair negative 4, 5, and the point B is on ordered pair 5, 5.

If the area of the rectangle to be drawn is 90 square units, where should points C and D be located, if they lie vertically below A and B, to make this rectangle?

C(4, −5), D(−3, −5)
C(5, −4), D(−4, −4)
C(5, −5), D(−4, −5)
C(−5, 5), D(−5, −4)

Answers

Answer:

C(5, −5), D(−4, −5)

Step-by-step explanation:

                  9 across

A(-4, 5) ————————— B(5, 5)

     |                                            |

     |          90 square units        |   10 down

     |                                            |

D(-4, -5) ————————— C(5, -5)

A football team starts on the 10 yard line moving toward the 50 yard line so they can score on the other side of the field. In three plays they gain 14 yards, lose 12 yards, and gain 4 more yards. What yard line do they start their fourth play?

Answers

Answer:

16 yard line

Step-by-step explanation:

The football team is starting on the 10 yard line. In the first play, they move up to the 24 yard line. Then in the second play, they go back to the 12 yard line since they lost 12 yards. Then in the third play, they gain 4 yards so you add 4 to 12. They end up at the 16 yard line after the third play. This means that they're going to start their fourth play at the 16 yard line.

Answer:

16 yards.

Step-by-step explanation:

They start at 10 yards. They are moving towards the 50 yard line, so gaining yards will add to the 10 yards instead of subtract from the 10 yards.

In the first play, they gain 14 yards. 10 + 14 = 24 yards.

In the second play, they lose 12 yards. 24 - 12 = 12 yards.

In the third play, they gain 4 yards. 12 + 4 = 16 yards, which is where they start their fourth play.

Hope this helps!

Other Questions
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