2. The price of a share of a particular stock listed on the New York Stock Exchange is currently $42. The following probability distribution shows how the price per share is expected to change over a week: Stock Price Change Prob. -2 0.05 -1 0.15 0 0.20 1 0.25 2 0.15 3 0.10 0.10 With the current price of $42 per share, simulate the price per share for next 60 weeks in MS Excel. What is the ending simulated price per share? (Hand in only the values and formulas print-outs (one page for each)).

A First Course in Probability (10th Edition)
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Chapter1: Combinatorial Analysis
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2. The price of a share of a particular stock listed on the New York Stock Exchange is
currently $42. The following probability distribution shows how the price per share is
expected to change over a week:
Stock Price Change Prob.
-2
0.05
-1
0.15
0
0.20
1
0.25
2
0.15
3
0.10
4
0.10
With the current price of $42 per share, simulate the price per share for next 60 weeks in
MS Excel. What is the ending simulated price per share? (Hand in only the values and
formulas print-outs (one page for each)).
Hint: First, create a table (with columns of min, max, result, prob) similar to examples
we have done in class. Then, use that table to find how much the stock's price will change
each week so that you can use that change value to find the stock's new weekly price.
Transcribed Image Text:2. The price of a share of a particular stock listed on the New York Stock Exchange is currently $42. The following probability distribution shows how the price per share is expected to change over a week: Stock Price Change Prob. -2 0.05 -1 0.15 0 0.20 1 0.25 2 0.15 3 0.10 4 0.10 With the current price of $42 per share, simulate the price per share for next 60 weeks in MS Excel. What is the ending simulated price per share? (Hand in only the values and formulas print-outs (one page for each)). Hint: First, create a table (with columns of min, max, result, prob) similar to examples we have done in class. Then, use that table to find how much the stock's price will change each week so that you can use that change value to find the stock's new weekly price.
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