Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
During a lottery, 400 names are fed into a computer program. Five of the names are identical. If a name is drawn from the program at random, what is the probability that one of these 5 names will be drawn?
Exam-Like
Community
TTanishq
A
0.0125
B
0.25
C
0.0025
D
0.0625
Explanation:
The probability calculation is based on the union of the five identical names being drawn. Since there are 400 total names and 5 of them are identical, the probability of drawing any one of these five names is:
P(\text{name 1} \cup \text{name 2} \cup \text{name 3} \cup \text{name 4} \cup \text{name 5}) \\ = \frac{1}{400} + \frac{1}{400} + \frac{1}{400} + \frac{1}{400} + \frac{1}{400} = 0.0125 \end{aligned}$$ This equals 5/400 = 0.0125, which corresponds to option A.Comments
Loading comments...