Seven Students Have Applied for Merit Scholarships

question 16

Short Answer

Seven students have applied for merit scholarships. This year 3 merit scholarships were awarded. If a random sample of 3 applications (from the population of 7) is selected,
a.what is the probability that 2 students were recipients of scholarships?
b.what is the probability that no students were the recipients of scholarship?

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Definitions:

Straight-Line Amortization

A method of systematically reducing a loan or the cost of an intangible asset over a fixed period, where equal amounts are expensed in each period.

Semiannual

Occurring twice a year; a term often used in finance to describe payments, interest accruals, or other events that happen every six months.

Unamortized Discount

The portion of a bond discount that has yet to be expensed in the income statement over the bond's life.

Gain

Refers to the profit earned from the sale of an asset or investment for more than its purchase cost, excluding income from the primary business activities.