Investment in new issues (the stock of newly formed companies) can be both suicidal and rewarding. Suppose that of 300 newly formed companies in 2010, only 14 appeared to have outstanding prospects. Suppose that an investor had selected two of these 300 companies back in 2010. Find the probability that at least one of the investor's companies had outstanding prospects. Round to seven decimal places. a. .0913043 b. .9086957 c. .2765663 d. .0446377
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There are 286 companies without outstanding prospects (300 - 14). The probability that the first company selected does not have outstanding prospects is 286/300. After selecting the first company, there are 299 companies left. The probability that the second Show more…
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