The following table gives the counts for three price categories of

506

stocks in a stock portfolio.

Price

Count

​ $0-$49.99

159

​ $50-$99.99

204

​ $100 or higher

143

Find the probability that a stock in the portfolio is below

​$50

.

Question content area bottom

Part 1

How many stocks are below

​$50

​?

The number of stocks in the price category below $50 is given in the table as 159.

Now, to find the probability that a randomly selected stock from the portfolio is priced below $50, we can use the formula for probability:

\[
P(\text{stock price below } \$50) = \frac{\text{Number of stocks below } \$50}{\text{Total number of stocks}}
\]

From the table:
- Number of stocks below $50 = 159
- Total number of stocks = 506

Thus, the probability is:

\[
P(\text{stock price below } \$50) = \frac{159}{506}
\]

Let me calculate that for you.The probability that a randomly selected stock from the portfolio is priced below $50 is approximately $ 0.314 $ or 31.42%.

Would you like more details or have any questions? Here are some related questions:

1. What is the probability that a stock is priced $100 or higher?
2. What is the probability that a stock is priced between $50 and $99.99?
3. How would the probabilities change if the total number of stocks increased?
4. What is the cumulative probability for stocks priced below $100?
5. How would we calculate the expected value of the stock price given probabilities?

**Tip:** Always express probabilities as decimal values for precise results or percentages for clearer understanding.

The following table gives the counts for three price categories of 506 stocks in a stock portfolio.
Price Count
$0-$49.99: 159
$50-$99.99: 204
$100 or higher: 143
Find the probability that a stock in the portfolio is below $50.

Find out how to calculate the probability that a stock in a portfolio of 506 stocks is priced below $50. This problem involves key probability concepts and is suitable for students in Grades 9-11.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation