Suppose That in a Population of 1000 Items, There Are

question 5

Multiple Choice

Suppose that in a population of 1000 items, there are 300 defective items and 700 items that are not defective.If you select two items at random from this population, what is the probability that both will be defective?

• A) 0.0898
• B) 0.4898
• C) 0.5112
• D) 0.9102

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Definitions:

Preferred Stock

A type of stock that gives holders preferential rights over common stockholders in terms of dividends and claims on assets.

Risky Investment

An investment with a high degree of risk that could lead to the loss of the principal amount but also offers potentially high returns.

Proportionate Ownership

The percentage of ownership that an investor holds in a company, typically represented in terms of share ownership.

Preemptive Rights

The rights that allow existing shareholders to purchase additional shares before new shareholders can buy them, in order to maintain their proportionate ownership in the company.