A team of 5 analysts is about to examine the earnings prospects of 20 corporatio

Question

A team of 5 analysts is about to examine the earnings prospects of 20 corporations. Each of the 5 analysts will study 4 of the corporations. These analysts are not equally competent. In fact, one of them is a star, having an excellent record of anticipating changing trends. Ideally, management would like to allocate the 4 corporations whose earnings will deviate most from past trends to this analyst. However, lacking this information, management allocates corporations to analysts randomly. What is the probability that at least 2 of the 4 corporations whose earnings will deviate most from past trends are allocated to the star analyst?

please give the detailed answer! thank you

Explanation / Answer

Answer:

0.1808

Solution:

Let X be the number of the four corporations whose earnings will deviate most from past trendsare allocated to the star analyst. Then X has a hypergeometric distribution: n=5 (number of trials), N=20 (population size) and s=4 (number of possible occurences).

Need to find P(X2) = 1- P(0)- P(1) = 1 – 0.37564 – 0.46233 =

0.16202

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