Question

Prob. 4. (20pt) On stock market, the price of a particular stock A is not constant. In fact, at the end of each day, the price of A changes by a random amount. This random amount is uniformly distributed in -0.5,0.5 HK dollars. We are interested in the probability that the price of A changes more than 10 HK dollars after 100 days. a) (5pts) Are there enough conditions for you to apply Central Limit Theorem? If b) (10pts) Based on the problem setting (possibly with your additional conditions) c) (5pts) If each random amount instead follows a different distribution, but with so, proceed to (b). Otherwise, state additional conditions. apply Central Limit Theorem and compute the wanted probability. the samemean and variance, will you result in part (b) change? Explain

Answer 1

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differern s p imdepnemtand avehem amd a tot e