Many people believe that the daily change of price of a company's stock on the stock market is a random variable with mean 0 and variance 2. that is, if yn represents the price of the stock on the n-th day, then yn = yn-1 + xn, n > 1 where x1, x2, . . are independent and identically distributed random variables with mean 0 and variance 2. suppose that the stock's price today is 100. if 2 = 1, use clt to approximate the probability that the stock's price will exceed 105 on the 10-th day?

Step-by-step explanation:

We can use normal aproximation, assuming that the random variables are a lot of that means the sample size is large.

Using the normal distribution table,

P(z>5) = 0.00005

Hence, we can conclude that the probability that the stock’s price will exceed 105 after 10 days is very small.

Hope this helps!

step-by-step explanation:

two pairs of adjacent sides are of equal length. this implies that one diagonal divides the kite into congruent triangles, and so the angles between the two pairs of equal sides are equal in measure. it also implies that the diagonals are perpendicular.

just keep asking questions until you have a better understanding.

step-by-step explanation: