In a Set of 15 Aluminum Castings, Two Castings Are

question 68

Multiple Choice

In a set of 15 aluminum castings, two castings are defective (D) , and the remaining thirteen are good (G) .A quality control inspector randomly selects three of the fifteen castings without replacement and classifies each as defective (D) or good (G) .How large is the sample space?

• A)3,375
• B)2,730
• C)455
• D)15
• E)3

---

Definitions:

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another market to make a risk-free profit.

Zero-Investment Portfolio

A portfolio strategy that involves creating a position without the need for initial capital by taking both long and short positions in stocks or other securities.

Net Investment

The total amount spent by a company on capital assets, such as plants and machinery, minus depreciation.

Nonsystematic Standard Deviation

A measure of the dispersion of returns on an investment due to factors specific to an individual asset or company, not the market.