# Probability Essay Examples

probability of attaining bn for each player would be 50%, Thus, at equilibrium, bn = ½ Suppose MMn chooses never to become informed (pn = 0), and MMm chooses always to become informed (pm = 1). Suppose the uninformed MM sets prices 0 < bn ≤ an < 1. Argue that in this case, the informed MM should optimally set bid (ask) price marginally above (below) the informed MM’s bid (ask) price whenever V = 1 (V = 0). As for the ask (bid) price when V = 1 (V = 0), any price such that the informed MM will not sell (buy) the asset is optimal. Price setting for MMn is bound by their comprehension of the market. In the case of MMn1 assuming ignorance of the value, the modelling of the pricing for both...

probability that 2 customers will arrive the next three hours? Solution: The probability of only 2 customers arriving is given by; P(X) = e-uux/x!Where x = 2 e = 2.71828 u= mean number of successes in the specified region of space u=4*3=12 Hence P (2) = e-12122/2! =...

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