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(10 points) We consider commodity with daily price changes being independent and iden- tically distributed according to some unknown distribution with mean 0.01 and...

Question

(10 points) We consider commodity with daily price changes being independent and iden- tically distributed according to some unknown distribution with mean 0.01 and variance 1/2. Let Co be the price of the commodity today and Cn the price of the commodity in n days Make an asymptotic statement about the probability P[Cn > Co] as n 0 and compute the approximate values for n 50,1000 and 10000_

(10 points) We consider commodity with daily price changes being independent and iden- tically distributed according to some unknown distribution with mean 0.01 and variance 1/2. Let Co be the price of the commodity today and Cn the price of the commodity in n days Make an asymptotic statement about the probability P[Cn > Co] as n 0 and compute the approximate values for n 50,1000 and 10000_



Answers

he manager of a stockroom in a factory has constructed the following probability distribution for the daily demand (number of times used) for a particular tool. It costs the factory $\$ 10$ each time the tool is used. Find the mean and variance of the daily cost for use of the tool.

Given this probability function here in order to find p to this would be one half times one half to the power of two, which is one half times 1/4. And that would give us a probability of 18 and then to find what there's sums to the total probability we needed to some toe one. And using just a geometric set up here will have one half up top divided by one minus one half. But in the denominator, that would just be one half again. So we get one half of that about one half that would actually give us one. So that matches, Yeah.


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