![]() With the probability distribution function, we can calculate the likelihood of the stock price increasing 3 times during the 5-work-day week. Historically, there is a 60% chance that the price of your stock will go up on any given day (that’s when the closing price is higher than the opening price), and a 40% chance it will drop. ![]() Suppose that you bought a single stock of General Motors. We use the letter “B” to express a Binomial distribution, followed by the number of trials and the probability of success in each one. Binomial events represent a sequence of identical Bernoulli events.
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