Question

the table shows the movement of walt disney stock for 30 randomly selected trading days. “up” means the stock price increased in value for the day, “down” means the stock price decreased in value for the day, and “no change” means the stock price closed at the same price it closed for the previous day. complete parts (a)-(e) below. down down down down up up up down up down up down up down down up up up up up down up down down down up down no change up down down no change no change (e) would the estimate of the probability of walt disney stock price movement improve if we considered 60 randomly selected days instead? explain. a. yes, because as we increase the number of trials of a probability experiment, our estimate becomes more accurate due to the law of large numbers. b. yes, because the observed proportion of stock movement for any sampling produces regular patterns that allow for accurate predictions. c. no, because as we increase the number of trials of a probability experiment, our estimate stays close to the same due to the law of averages. d. no, because the observed proportion of stock movement is different and unpredictable for any sampling.

Explanation:

The Law of Large Numbers states that as the number of trials in a probability - experiment increases, the experimental probability (estimate) approaches the theoretical probability. In the context of estimating the probability of stock price movement, increasing the number of trading days (trials) from 30 to 60 would lead to a more accurate estimate.

Answer:

A. Yes, because as we increase the number of trials of a probability experiment, our estimate becomes more accurate due to the Law of Large Numbers.