Quantitative Methods - Quantitative Methods Section 2
- Option : B
- Explanation : The number of ways in which an investor can invest in 3 AAA, 3 AA and 2 A bonds is: 10C3 x 10C3 x 10C2 = 120 x 120 x 45 = 648,000.
- Option : B
- Explanation : Since the order in which the stocks are sold matters, use the permutation formula: Number of ways = n! / ( n - r )! = 12! / (12 - 3)! = 1320. You may also use the nPr function on the calculator. Note that r is the number of stocks to be selected and n is the total number of stocks.
- Option : C
- Explanation : Permutation is the method used when the order does matter. The order does not matter in combination and labeling.
- Option : B
- Explanation : Use the combination formula since the order of selection does not matter. Number of ways = n! / [ r! (n - r)! ] = 10! / [3! (10 - 3)! ] = 120. You may also use the nCr function on the calculator. Note that r is the number of stocks to be selected and n is the total number of stocks.
