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Unformatted text preview: actly 6 of the next 10 trading days.
(c) Consider the same stock as in part (b). Find the probability that its price increases on between 50 and 70 (inclusive) of the next 100 trading days. Problem 4. Travelling along the Iceﬁelds Parkway in the Rocky Mountains, motorists
sometimes see mountain goats standing at the side of the road. The points along the
highway where the animals are sighted are random and independent. Driving along any
10km stretch of the highway, the probability that a motorist will pass exactly k mountain
e−2.5 · (2.5)k
(a) What is the mean distance along the highway a motorist must travel before
passing the ﬁrst mountain goat?
(b) What is the standard deviation of the distance along the highway a motorist
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