Probability is a set function P(E) that says for every event E there is a number referred to as the "probability of E" such that: (1) The probability of an event is greater than or equal to zero ...

At the end of nine months, you see that the probability of the stock price rising to $17.28 is zero, while the probability of it dropping to $7.68 is 4.32; the probability of it reaching $5.12 is ...

The function can be set up for classical probability, but it's considerably easier to just construct the formula yourself, especially for a large range of outcomes. Open Microsoft Excel. Enter the ...