Statistic Problem Set

Problem Question 1

27. You decide to invest in stock of a particular type of company and set the guideline that you will only buy stock on companies that are ranked in the 80th percentile or above in terms of dividends paid in the previous year. You are looking at a company that ranked 78 of 345 companies that paid dividends in 2019.

a. Will this company qualify for your portfolio?

b. If you had the data on the total dividends paid by each of the 345 companies, which measure of average would be the most meaningful – mean, median, midrange, or mode? Explain.

Problem Question 2

27. In a class of 18 students there are 11 math majors and 7 computer science majors. Four students are randomly picked to prepare a demonstrate on the use of a graphing calculator.

a. If one person in the class is chosen at random to draw the names out of a hat, what is the probability that the person drawing the names is a math major?

b. How many ways can the group of students be formed if there are no restrictions on composition?

c. How many ways can three math majors be chosen?

d. How many ways can 1 computer science major be chosen?

e. What is the probability that the random selection of the four-person group will result in three math majors and 1 computer science major?