Investment in new issues (the stock of newly formed companies) can be both suicidal and rewarding. Supposethat of 500 newly formed companies in 2010, only 18 appeared to have outstanding prospects. Suppose thatyou had selected two of these 500 companies back in 2010. Find the probability that at least one of yourcompanies had outstanding prospects.
A) 0.0707735
B) 0.3581242
C) 0.9292265
D) 0.0347735

Question

Quizplus · Accepted Answer

The Answer of Investment in new issues (the stock of newly formed companies) can be both suicidal and rewarding. Supposethat of 500 newly formed companies in 2010, only 18 appeared to have outstanding prospects. Suppose thatyou had selected two of these 500 companies back in 2010. Find the probability that at least one of yourcompanies had outstanding prospects.
A) 0.0707735
B) 0.3581242
C) 0.9292265
D) 0.0347735

Investment in New Issues (The Stock of Newly Formed Companies)