Letters and Words
A common GMAT P&C problem type is letter problems. You would be asked to take letters from an existing word to form new words.
Example:
Four letters are taken at random from the word AUSTRALIA. What is the probability to have two vowels and two consonants?
Solution:
Vowels: A, U, A, I, A.
Consonants: S, T, R, L
This is a case of "without replacement".
Total outcomes: C(9,4)=9*8*7*6/4!=126
Outcomes with two vowels and two consonants: C(5,2)*C(4,2)=60
Probability=60/126=10/21
Example:
From the word AUSTRALIA, a letter is taken at random and put back. Then a second letter is taken and put back. This process is repeated for four letters. What would be the possibility that two vowels and two consonants have been chosen?
This is a case of "with replacement":
Total outcomes: 9^4
Outcomes with two vowels and two consonants: C(4,2)*5^2*4^2
You can calculate the probability from here.
Note that there is a special thing with letter problems, ie. the repeating letters. In the above examples the repeating letters don't matter. However they would matter if the question is asked differently.
Example:
There is a word AUSTRALIA. Four letters are taken at random. How many different words can be formed that have two vowels and two consonants?
Solution:
Vowels: A, U, A, I, A. Distinguish vowles: A, U, I.
Consonants: S, T, R, L
Outcomes with two vowels and two consonants:
1) The two vowels are different: C(3,2)*C(4,2)
2) The two vowels are the same: C(1,1)*C(4,2)
After you've got the four letters you need to order them to get different outcomes. So the first case (with different vowels) would be C(3,2)*C(4,2)*P(4,4)=432, and the second case (with same vowels) would be C(1,1)*C(4,2)*P(4,4)/2=72. The final outcome would be 504.