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) A priori probability
B) Empirical probability
C) Subjective probability
D) Conditional probability

Question

Quizplus · Accepted Answer

Empirical probability is based on observed data, which is the case here as the probabilities are derived from the closing prices of the stock over the last month.

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