The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. Th performance the preceding year. HINT [See Example 2.] Symbol T vz CVX MCD Company AT&T Verizon Chevron McDonald's Price ($) Yield 5.48% 33.59 46.78 4.70% 112.18 93.70 3.82% 3.63%
The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. Th performance the preceding year. HINT [See Example 2.] Symbol T vz CVX MCD Company AT&T Verizon Chevron McDonald's Price ($) Yield 5.48% 33.59 46.78 4.70% 112.18 93.70 3.82% 3.63%
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Chapter1: Combinatorial Analysis
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![The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top ten stocks of the "Dogs of the Dow" list for 2015, based on their
performance the preceding year. HINT [See Example 2.]
Symbol
T
CVX
VZ
MCD
PFE
MRK
P(E)=
CAT
XOM
=
ΚΟ
Company
AT&T
GE General Electric
Verizon
n(E)
n(S)
Chevron
McDonald's
Pfizer
Merck
Caterpillar
ExxonMobil
Coca-Cola
Price ($)
33.59
46.78
112.18
93.70
31.15
25.27
56.79
91.53
92.45
42.22
Yield
5.48%
4.70%
3.82%
3.63%
3.60%
3.48%
3.17%
3.06%
If you selected two of these stocks at random, what is the probability that both the stocks in your selection had yields of 3.5% or more?
2.99%
Step 1
We are given a table of the top ten stocks from 2015, along with their performance. We are asked to calculate the probability that if we select two stocks at random, both stocks will have
yields of 3.5% or more.
Since we are selecting the stocks at random, we consider each outcome to be equally likely. Recall the formula for the probability of an event E in which all outcomes are equally likely.
2.89%
The notation n(S) stands for the total number of outcomes in the sample space. Using combinations, we can calculate n(S) by finding the number of ways we could select two stocks from ten
without replacement.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2da5533f-8665-454a-8786-e097ba2bf066%2Fe16aaec5-ea21-4ecd-bd90-bd37bb2fdfd1%2F0041c4_processed.png&w=3840&q=75)
Transcribed Image Text:The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top ten stocks of the "Dogs of the Dow" list for 2015, based on their
performance the preceding year. HINT [See Example 2.]
Symbol
T
CVX
VZ
MCD
PFE
MRK
P(E)=
CAT
XOM
=
ΚΟ
Company
AT&T
GE General Electric
Verizon
n(E)
n(S)
Chevron
McDonald's
Pfizer
Merck
Caterpillar
ExxonMobil
Coca-Cola
Price ($)
33.59
46.78
112.18
93.70
31.15
25.27
56.79
91.53
92.45
42.22
Yield
5.48%
4.70%
3.82%
3.63%
3.60%
3.48%
3.17%
3.06%
If you selected two of these stocks at random, what is the probability that both the stocks in your selection had yields of 3.5% or more?
2.99%
Step 1
We are given a table of the top ten stocks from 2015, along with their performance. We are asked to calculate the probability that if we select two stocks at random, both stocks will have
yields of 3.5% or more.
Since we are selecting the stocks at random, we consider each outcome to be equally likely. Recall the formula for the probability of an event E in which all outcomes are equally likely.
2.89%
The notation n(S) stands for the total number of outcomes in the sample space. Using combinations, we can calculate n(S) by finding the number of ways we could select two stocks from ten
without replacement.

Transcribed Image Text:n(S) = C(10, 2✔
= 45
45
Step 2
Next we will find n(E), which is the number of ways we could select two stocks at random such that both stocks have yields of 3.5% or more. Recall the given table.
Symbol
T
VZ
CVX
MCD
PFE
MRK
CAT
XOM
KO
Company
Of the ten stocks, 0.2
AT&T
GE General Electric
Verizon
Chevron
McDonald's
Pfizer
Merck
Caterpillar
ExxonMobil
Coca-Cola
Price ($)
Enter an exact number.
33.59
46.78
112.18
93.70
31.15
25.27
56.79
91.53
92.45
42.22
Yield
5.48%
4.70%
3.82%
3.63%
3.60%
3.48%
3.17%
3.06%
2.99%
2.89%
of them have yields of 3.5% or more.
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