Suppose that the price of a share of a particular stock listed on the New York Stock Exchange is currently $38. The following probability distribution shows how the price per share is expected to change over a three-month period. Stock Price Change ($) Probability
−2 0.05
−1 0.10
0 0.27
+1 0.20
+2 0.18
+3 0.10
+4 0.10
(a) Construct a spreadsheet simulation model that computes the value of the stock price in 3 months, 6 months, 9 months, and 12 months under the assumption that the change in stock price over any three-month period is independent of the change in stock price over any other three-month period. For a current price of $38 per share, what is the average stock price (in $) per share 12 months from now?
(b) Based on the model assumptions, what are the lowest and highest possible prices (in $) for this stock in 12 months?

6, 10

9, -13

12, -21

18, -23

step-by-step explanation:

you just add 6 to the x-coordinate and subtract 10 from the y-coordinate.

, and

for

step-by-step explanation:

we can analyze the pattern at which the terms increase. let us denote , , , so that we can call

note the following:

the pattern: to get the next term value, we just add the next term number (e.g. 1st, 2nd, to the previous term value (term values are the given numbers in the question, 1, 3, 6, 10, 15,

from , to get to , we add

from , to get to , we add

etc.

we need to form a recursive formula, a formula that has the next term as a function of the previous term. so a possible recursive formula can be

, and for

i think it will be zero as slope has a formula of difference between initial and final distance divided by itz time interval

the number 100 represents the number of trials in the experiment.

49/100 represents the experimental probability of the coin landing heads up.

step-by-step explanation: