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Angelo studied the report by an analyst that predicted the probabiliti

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Angelo studied the report by an analyst that predicted the probabiliti  [#permalink]

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New post 02 Jun 2020, 06:59
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  35% (medium)

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58% (02:02) correct 42% (02:17) wrong based on 24 sessions

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Angelo studied the report by an analyst that predicted the probabilities of the returns four stocks may generate in the next one year. Based on the probabilities of the returns, Angelo invested $100 each in four stocks for a year. He plans to sell a stock at the end of the year if the stock is valued at not less than $140. What is the probability that Angelo sells at least 1 of the stocks?

A. 0.011
B. 0.021
C. 0.979
D. 0.989
E. 1


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Re: Angelo studied the report by an analyst that predicted the probabiliti  [#permalink]

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New post 02 Jun 2020, 07:51
see table column 2 are referring to stocks with % >=40 ; so we get P of not getting >=40 would be
.3*.7*.5*.2 ; .021
so probability that Angelo sells at least 1 of the stocks ; 1-.021 ; .979
OPTION C


Bunuel wrote:
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Angelo studied the report by an analyst that predicted the probabilities of the returns four stocks may generate in the next one year. Based on the probabilities of the returns, Angelo invested $100 each in four stocks for a year. He plans to sell a stock at the end of the year if the stock is valued at not less than $140. What is the probability that Angelo sells at least 1 of the stocks?

A. 0.011
B. 0.021
C. 0.979
D. 0.989
E. 1


Attachment:
1.png
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Re: Angelo studied the report by an analyst that predicted the probabiliti  [#permalink]

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New post 03 Jun 2020, 13:37
IMO C

P(Angelo sells at least 1 of the stocks) = 1 - P(Angelo do not sell any stock)

Angelo do not sell any stock when all stocks market value is less than $140 or less than 40% return
P(Angelo do not sell any stock) = P(Angelo do not sell first stock) * P(Angelo do not sell second stock)* P(Angelo do not sell third stock) * P(Angelo do not sell fourth stock)

= P(return less than 40% for stock 1) * P(return less than 40% for stock 2) * P(return less than 40% for stock 3) * P(return less than 40% for stock 4)
= 3/10 * 7/10 * 5/10 *2/10 = 0.021

P(Angelo sells at least 1 of the stocks) = 1- 0.021 = 0.979
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Re: Angelo studied the report by an analyst that predicted the probabiliti   [#permalink] 03 Jun 2020, 13:37

Angelo studied the report by an analyst that predicted the probabiliti

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