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How can stock price react randomly to events that have more than 50 percent probability of happening?
Wiki User
∙ 16y ago
Stockbrokers and traders are human beings. They may read an event differently, have different predictions on it's consequences, or react to it differently based on emotions, media attention, or something else entirely.
Wiki User
∙ 16y ago
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What does equally unlikely mean in probability?
Two events are equally unlikely if the probability that they do not happen is the same for each event. And, since the probability of an event happening and not happening must add to 1, equally unlikely events are also equally likely,
What is the probability of two events happening together when on their own the first event happens 75 and the second event happens 50?
If the two events are independent then the probability of them both happening is Pr(event1) X Pr(event2). Which in your case is 0.75x0.50=0.375 which translates into 37.5%
How do simulations help you understand the probability of events happening?
by keeping in touch with your family and friends and helping others
What is the probability that 4 randomly selected people all have different birthdays?
Let us assume that there are exactly 365 days in a year and that birthdays are uniformly randomly distributed across those days. First, what is the probability that 2 randomly selected people have different birthdays? The second person's birthday can be any day except the first person's, so the probability is 364/365. What is the probability that 3 people will all have different birthdays? We already know that there is a 364/365 chance that the first two will have different birthdays. The third person must have a birthday that is different from the first two: the probability of this happening is 363/365. We need to multiply the probabilities since the events are independent; the answer for 3 people is thus 364/365 × 363/365. You should now be able to solve it for 4 people.
Among the contestants in a competition are 49 women and 29 men so if 5 winners are randomly selected what is the probability that they are all men?
(29/78)*(28/77)*(27/76)*(26/75)*(25/74) = .0056252425 two events are dependent if the outcome of one event affects the probability of the other events. The probability that dependent events A and B occur together is P(A and B) = P(A) * P(B given A)
What does equally unlikely mean in probability?
Two events are equally unlikely if the probability that they do not happen is the same for each event. And, since the probability of an event happening and not happening must add to 1, equally unlikely events are also equally likely,
The probability of a person getting a cold is .7 What is the probability that 4 people if selected randomly will get a cold?
If the events can be considered independent then the probability is (0.7)4 = 0.24 approx.
What does equally likely mean in math term?
The two events have the same probability of happening.
What is the probability of two events happening together when on their own the first event happens 75 and the second event happens 50?
If the two events are independent then the probability of them both happening is Pr(event1) X Pr(event2). Which in your case is 0.75x0.50=0.375 which translates into 37.5%
How do simulations help you understand the probability of events happening?
by keeping in touch with your family and friends and helping others
What must you do to determine the probability of multiple independent events happening a certain way?
Divide the number of events that can happen a certain way by the number of all possible events.
What is Probability of Flipping a coin five times in a row and having it land on heads?
The probability of getting a heads on the first flip is 1/2. Similarly, the probability on each subsequent flip is 1/2, since they are independent events. The probability of several independent events happening together is the product of their individual probabilities.
The probability for heart disease in a population is 30 percent the probability for the flu in the population is 50 percent the probability of getting both is 10 percent why or why not?
When determining the probability that two events happen at the same time, you convert the percents to decimals and then multiply the percents together. Therefore, 30 percent, or .3, times 50 percent, or .5 .3 x .5 = .15 Converting back into a percentage, the answer is 15% probability that you will get both. 10% is therefore incorrect.
What is the probability that 4 randomly selected people all have different birthdays?
Let us assume that there are exactly 365 days in a year and that birthdays are uniformly randomly distributed across those days. First, what is the probability that 2 randomly selected people have different birthdays? The second person's birthday can be any day except the first person's, so the probability is 364/365. What is the probability that 3 people will all have different birthdays? We already know that there is a 364/365 chance that the first two will have different birthdays. The third person must have a birthday that is different from the first two: the probability of this happening is 363/365. We need to multiply the probabilities since the events are independent; the answer for 3 people is thus 364/365 × 363/365. You should now be able to solve it for 4 people.
Why do complementary events always have a probability of one?
If an event is absolutely certain to happen is then we say the probability of it happening is 1.Complementary events are such that one of the events musthappen. Therefore the probability of one of a set of complementary events occurring is 1.For instance : The probability that a fair coin when tossed will come down showing heads is 1/2, and that it will show tails is also 1/2.The two events are complementary so the probability that the coin toss will result in either a heads or a tails is 1.Similarly, the probability that a die when rolled will show a number 1, 2, 3, 4, 5 or 6 is 1 as all six events are complementary.
Which events have a prabability of 25 percent?
On a scale of 1 to 0 it is a 0.25 probability chance that the event might happen
Among the contestants in a competition are 49 women and 29 men so if 5 winners are randomly selected what is the probability that they are all men?
(29/78)*(28/77)*(27/76)*(26/75)*(25/74) = .0056252425 two events are dependent if the outcome of one event affects the probability of the other events. The probability that dependent events A and B occur together is P(A and B) = P(A) * P(B given A)
