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 no US stocks?
A).064
B).127
C).056
D).129
E).033

Question

Quizplus · Accepted Answer

To find the probability of buying no US stocks, we need to select all 3 stocks from the 4 EU companies. The number of ways to choose 3 stocks from 4 EU companies is C(4,3) = 4. The total number of ways to choose 3 stocks from 10 companies is C(10,3) = 120. Thus, the probability is 4/120 = 0.033.

Your Investment Club Plans to Buy Three Stocks This Semester