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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%

A First Course in Probability (10th Edition)
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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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 ($) 33.59 46.78 112.18 93.70 31.15 25.27 56.79 91.53 92.45 42.22 Yield 5.48% 4.70% 3.82% 3.63% 3.60% 3.48% 3.17% 3.06% If you selected two of these stocks at random, what is the probability that both the stocks in your selection had yields of 3.5% or more? 2.99% Step 1 We are given a table of the top ten stocks from 2015, along with their performance. We are asked to calculate the probability that if we select two stocks at random, both stocks will have yields of 3.5% or more. Since we are selecting the stocks at random, we consider each outcome to be equally likely. Recall the formula for the probability of an event E in which all outcomes are equally likely. 2.89% The notation n(S) stands for the total number of outcomes in the sample space. Using combinations, we can calculate n(S) by finding the number of ways we could select two stocks from ten without replacement.
Transcribed Image Text:The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top ten stocks of the "Dogs of the Dow" list for 2015, based on their performance the preceding year. HINT [See Example 2.] Symbol T CVX VZ MCD PFE MRK P(E)= CAT XOM = ΚΟ Company AT&T GE General Electric Verizon n(E) n(S) Chevron McDonald's Pfizer Merck Caterpillar ExxonMobil Coca-Cola Price ($) 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.
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 ($) Enter an exact number. 33.59 46.78 112.18 93.70 31.15 25.27 56.79 91.53 92.45 42.22 Yield 5.48% 4.70% 3.82% 3.63% 3.60% 3.48% 3.17% 3.06% 2.99% 2.89% of them have yields of 3.5% or more.
Transcribed Image Text:n(S) = C(10, 2✔ = 45 45 Step 2 Next we will find n(E), which is the number of ways we could select two stocks at random such that both stocks have yields of 3.5% or more. Recall the given table. Symbol T VZ CVX MCD PFE MRK CAT XOM KO Company Of the ten stocks, 0.2 AT&T GE General Electric Verizon Chevron McDonald's Pfizer Merck Caterpillar ExxonMobil Coca-Cola Price ($) 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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