In order to \"spice up\" your investment portfolio, you decided, on the morning

Question

In order to "spice up" your investment portfolio, you decided, on the morning of March 19. 2004, to ignore your brokers cautious advice and purchase three tech stocks and two non-tech stocks at random from the following selection (prices as of March 19. 2004) recommended by your "best friend" Travis: (a) How many possible selections are possible? (b) You tend to have bad luck with stocks -- they usually go down the moment you buy them. How many of the selections in part (a) consist only of stocks that declined in value by the end of the day? What is the probability that all of your stocks declined in value by the end of the day? (c) In how many selections did all the tech stocks and none of the non-tech stocks decline in value by the end of the day?

Explanation / Answer

a)we have to select 3 tech and 2 non-tech

total 6 tech and 6 non-tech are present

so we have to choose 3 out of 6 . and 2 out of 6

= 6C3*6C2 = 20*15 = 300

b) 5 tech stock declined , 3 non-stock declined

hence required number

5C3 * 3C2 = 10*3= 30

hence required probability = 30/300 = 0.10

c) all tech and none of non-tech declined

= 5C3 * 3C2 = 30 , {note that there are 3 non-tech which didn't decline}

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