Question

The retirement plan for a company allows employees to invest in 10 different funds. If Sarah...

The retirement plan for a company allows employees to invest in 10 different funds. If Sarah selected 4 of these funds at random and 6 of the 10 grew by at least 10% over the last year, what is the probability that 3 of Sarah's 4 funds grew by at least 10 % last year?

Math   Statistics-And-Probability   
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Answer #1

Grow at least 10% = 6

Do not grow at least 10%= 4

Total funds = 10

Number of funds selected = 4

Number of ways of selecting 4 funds from 10 funds = 10C4 = 210

Number of ways of selecting 3 Grow at least 10% funds from 6 Grow at least 10% funds = 6C3 = 20

Number of ways of selecting 1 Do not grow at least 10% funds from 4 Do not grow at least 10% funds = 4C1 = 4

So,

Probability that 3 of Sarah's 4 funds grew by at least 10 % last year is given by:

So,

Answer is:

0.3810

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