{"id":24453,"date":"2021-07-27T05:17:25","date_gmt":"2021-07-27T05:17:25","guid":{"rendered":"https:\/\/papersspot.com\/blog\/2021\/07\/27\/pr101-probability-of-a-stock-with-given-random-variables\/"},"modified":"2021-07-27T05:17:25","modified_gmt":"2021-07-27T05:17:25","slug":"pr101-probability-of-a-stock-with-given-random-variables","status":"publish","type":"post","link":"https:\/\/papersspot.com\/blog\/2021\/07\/27\/pr101-probability-of-a-stock-with-given-random-variables\/","title":{"rendered":"PR101 Probability of a stock with given random variables"},"content":{"rendered":"<p>The cost of a stock at the time n is modeled by the random variable X_n. We know that the collection of stock prices is given by: {X_n} from 0 to infinity. The starting price is modeled by the random variable X_0. We also know that P(X_0=200)=1. <br \/>The price of the stock at the time n depends only on the stock price at time n-1 in the following way: <br \/>P(X_n = x_n-1 1 | X_n-1 = x_n-1) = p, <br \/>and <br \/>P(X_n = x_n-1 &#8211; 1 | X_n-1 = x_n-1) = 1-p <br \/>We also know that <br \/>P(X_n = x | X_n-1 = x_n-1) = 0, <br \/>for every x not in {x_n-1 &#8211; 1, x_n-1 1} <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cost of a stock at the time n is modeled by the random variable X_n. We know that the collection of stock prices is given by: {X_n} from 0 to infinity. The starting price is modeled by the random variable X_0. We also know that P(X_0=200)=1. The price of the stock at the time [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[31],"class_list":["post-24453","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-statistics"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/24453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=24453"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/24453\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=24453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=24453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=24453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}