Your investment club plans to buy three stocks this semester and has narrowed the choice of stocks to a final ten- six US companies and four EU companies.From the ten finalists, you now plan to randomly select the three stocks to buy.What is the probability that you end up buying one US stock and two EU stocks?
A).30
B).80
C).20
D).70
E).25

Question

Quizplus · Accepted Answer

There are 10C3 ways to choose 3 stocks from 10 finalists. There are 6C1 ways to choose 1 US stock from 6 US companies and 4C2 ways to choose 2 EU stocks from 4 EU companies. So, the probability of choosing 1 US stock and 2 EU stocks is (6C1 * 4C2) / 10C3 = 30/120 = 1/4 = 0.25.

Your Investment Club Plans to Buy Three Stocks This Semester