The Closing Price of a Company's Stock Tomorrow Can Be

question 56

Multiple Choice

The closing price of a company's stock tomorrow can be lower, higher or the same as today's closing price. Based on the closing price of the stock collected over the last month, 25% of the days the closing price was higher than previous day's closing price, 45% was lower than previous day's and 30% was the same as previous day's. Based on this information, the probability that tomorrow's closing price will be higher than today's is 25%. This is an example of using which of the following probability approach?

• A) empirical classical probability
• B) subjective probability
• C) a priori classical probability
• D) conditional probability

Learn about the relationship between the money supply, interest rates, and economic demand.

Recognize how changes in monetary policy affect the economy in the short and long run.

Understand how fiscal policy influences the economy primarily in the short run.

Identify the effects of interest rate changes on investment and consumption.

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Definitions:

Immediate Reinforcement

The provision of a reward or punishment immediately following a behavior, increasing the likelihood of that behavior being repeated in the future.

Observational Learning

A learning process through watching others, retaining the information, and then later replicating the behaviors that were observed.

Shaping

A process in operant conditioning involving the reinforcement of successive approximations of a desired behavior to teach a new behavior.

Learning Strategy

A planned approach or set of tactics used to facilitate the process of acquiring knowledge or skills.