A bond analyst was given a list of 12 corporate bonds. From that list she selected 3 whose ratings she felt were in danger of being downgraded in the next year. In actuality, a total of 4 of the 12 bonds on the list had their ratings downgraded in the next year. Suppose that the analyst had simply chosen 3 bonds randomly from this list. What is the probability that at least 2 of the chosen bonds would be among those whose ratings were to be downgraded in the next year?
Added by Kelly R.
Step 1
The probability of choosing 2 bonds whose ratings were downgraded is calculated as follows: There are C(4,2) ways to choose 2 bonds from the 4 bonds whose ratings were downgraded. And there are C(12,3) total ways to choose 3 bonds from the 12 bonds. But since we Show more…
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