Author Question: A stock analyst was provided with a list of 25 stocks. He was expected to pick 3 stocks from the ... (Read 137 times)

jessicacav

  • Hero Member
  • *****
  • Posts: 558
A stock analyst was provided with a list of 25 stocks. He was expected to pick 3 stocks from the list whose prices are expected to rise by more than 20 after 30 days. In reality, the prices of only 5 stocks would rise by more than 20 after 30 days. If he randomly selected 3 stocks from the list, he would use what type of probability distribution to compute the probability that all of the chosen stocks would appreciate more than 20 after 30 days?
 
  A) Poisson distribution. B) hypergeometric distribution.
  C) binomial distribution. D) none of the above.

Question 2

What type of probability distribution will most likely be used to analyze the number of cars with defective radios in the following problem?
   From an inventory of 48 new cars being shipped to local dealerships, corporate reports indicate that 12 have defective radios installed. The sales manager of one dealership wants to predict the probability out of the 8 new cars it just received that, when each is tested, no more than 2 of the cars have defective radios.
 
  A) binomial distribution. B) hypergeometric distribution.
  C) Poisson distribution. D) none of the above.



carolinefletcherr

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

B

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

For a complete list of videos, visit our video library