Question: Suppose you have two limit orders outstanding on two different stocks. The probability that the first limit order executes before the close of trading is

Suppose you have two limit orders outstanding on two different stocks. The probability that the first limit order executes before the close of trading is 0.45. The probability that the second limit order executes before the close of trading is 0.20. The probability that the two orders both execute before the close of trading is 0.10. What is the probability that at least one of the two limit orders executes before the close of trading?

Step by Step Solution

★★★★★

3.46 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The probability that at least one of the two orders executes is given by the addition rule for ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1455-M-S-L-R(9555).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

Suppose you have two siblings, and all three of you were born in the same month of the year. Explain how you could use simulation to estimate the probability that in a family of three children they...

Suppose you have two columns of monthly data, one on advertising expenditures and one on sales. If you use this data set, as is, to regress sales on advertising, will it adequately capture the...

Suppose you have two populations: Population A-All students at Illinois State University (N = 21,000) and Population B-All residents of the city of Homer Glen, IL (N = 21,000). You want to estimate...

Suppose you have two limit orders outstanding on two different stocks. The probability that the first limit order executes before the close of trading is 0.65. The probability that the second...

5. Suppose that you have two limit orders outstanding on two different stocks. The probability that the first limit order executes before the close of trading in 0.45. The probability that the second...

Suppose you have two limit orders outstanding on two different stocks. The probabil- ity that the first limit order executes before the close of trading is 0.45. The probabil- ity that the second...

Question 2 0/1 pts You have two limit orders outstanding on two stocks. The probability that the first limit order executes before closing is 50%. The probability that the second limit order executes...

Question 10 6.66 pts You have two limit orders outstanding on two stocks. The probability that the first limit order executes before closing is 60%. The probability that the second limit order...

Compare and contrast the exercise procedure for stock options with that for index options. What major advantages does exercising an index option have over exercising a stock option?( refer attached...

Why do noble gases have comparatively large atomic sizes?

The comparative income statement for Chung Corporation at the end of December 31, 2010, provided the following summarized pretax data: Included in the 2010 data is a $4,000 revenue that was taxable...

What is the coupon payment of a 1 0 - year $ 1 , 0 0 0 bond with a 7 % coupon rate with quarterly payments? A . $ 7 0 B . $ 3 5 C . $ 5 . 8 3 D . $ 1 7 . 5

4. In Example 4.4 (stack loss data), assess the posterior probabilities of the eight alternative models when the parameters governing outlier selection under P(yi |, 2, , ) = (1 )N(yi |, 2) + N(yi...

Explain how a scatter diagram can be used to identify the type of regression to use.

What is the SSE? How is this related to the SST and the SSR?

The Delta Wire Corporation was founded in 1978 in Clarksdale, Mississippi. The company manufactures high-carbon specialty steel wire for global markets and at present employs about 100 people. For...

According to a report from a business intelligence company, smartphone owners are using an average of 19 apps per month. Assume that number of apps used per month by smartphone owners is normally...

Listed below are paired data consisting of movie budget amounts and the amounts that the movies grossed. Find the regressionequation, letting the budget be the predictor(x) variable. Find the best...

Question 3 : Solve the question (35 points) Suppose you bought 50 shares of the company BETA at the price $35 per share. A). If the stock price goes up to $42 per share, what is the percentage return...