portfolio manager is selecting stocks to add into his investment portfolio. Assume 50% of the stocks meeting the stock-selection criteria are in the clean energy industry. Also, dividend-paying clean energy stocks are 20% of the total number of stocks meeting the stock-selection criteria. What is the probability that a stock is dividend paying, given that it is a clean energy stock that has met the stock selection crite

portfolio manager is selecting stocks to add into his investment portfolio. Assume 50% of the stocks meeting the stock-selection criteria are in the clean energy industry. Also, dividend-paying clean energy stocks are 20% of the total number of stocks meeting the stock-selection criteria. What is the probability that a stock is dividend paying, given that it is a clean energy stock that has met the stock selection crite

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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A investor estimates that, in a year’s time, a certain stock has a 30% chance to be worth $125 per share, a 45% chance to be worth $90 per share, and a 25% chance to be worth$60 per share. Determine the expectation of the price per share of the stock in a year’s time.
The Business School at State University currently has three parking lots, each containing 155 spaces. Two hundred faculty members have been assigned to each lot. On a peak day, an average of 70% of all lot 1 parking sticker holders show up, an average of 72% of all lot 2 parking sticker holders show up, and an average of 74% of all lot 3 parking sticker holders show up. a. Given the current situation, estimate the probability that on a peak day, at least one faculty member with a sticker will be unable to find a spot. Assume that the number who show up at each lot is independent of the number who show up at the other two lots. Compare two situations: (1) each person can park only in the lot assigned to him or her, and (2) each person can park in any of the lots (pooling). (Hint: Use the RISKBINOMIAL function.) If needed, round your answer to a whole percentage and if your answer is zero, enter "0". No pooling: Pooling: 51.4 % 83.8 % b. Now suppose the numbers of people who show up at…
During one year, a particular mutual fund outperformed the S&P 500 index 32 out of 52 weeks. Find the probability that it would perform as well or better again. The probability is (Round to four decimal places as needed.)
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 88.5%. If BIC charges a premium of 9,970 silver coins and would pay a death benefit of 78,065 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative mumber.
the sales manager knows that 18% of his clients do not pay their debts in full. He supposes that he selects a sample of 59+ clients. What is the probability that 15% or more will not be fulfilled in their obligations? Type your answer here:
An insurance company sells a one year term life insurance policy to an 80 year old woman. The woman pays a premium of $1000. If she dies within one year, the company will pay $18,500 to her beneficiary. According to the company's statistics department, the probability that an 80 year old woman will be alibve one year later is 0.9581. Find the expected value of the insurance company's profit.
The probability that an applicant will be approved for a mortgage is 0.15. Each applicant has the same probability of being approved and the event that they are approved are independent. What is the probability that out of three applicants, exactly two of them get approved? Enter your answer as a decimal, with three decimal places. For example, if the probability is 15.37%, enter 0.154
Suppose that 51% of the people who inquire about investments at a certain brokerage firm end up investing in stocks, 41% end up investing in bonds, and 61% end up investing in stocks or bonds (or both). What is the probability that a person who inquires about investments at this firm will invest in both stocks and bonds? Write your answer as a decimal (not as a percentage).
Actuaries are statisticians who help determine insurance premiums. Assume major car accidents (that end up totaling the car) in a small rural area happen at a rate of 40 per year. What is the probability that in the coming year there will be at most 37 car accidents?
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 92.2%. If BIC charges a premium of 7,941 silver coins and would pay a death benefit of 42,081 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.