Statistics Stock Combinations

User Generated

ohaavr

Mathematics

Description

The price for the stock of Amazon.com can go either up or down during each trading day.  It’s closing price at the end of the day will be either higher or lower than its price that closed the previous day. Consider a 5 week time period with n=25 trading days. How many combinations are there where the stock goes up on x=20 of the days and down on the other n-x=5 days?

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Explanation & Answer

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combination formulae

ncr

up=25c5

  =53130

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