Investment in new issues (the stock of newly formed companies) can be both suicidal and rewarding. suppose that of 400 newly formed companies in 2010, only 11 appeared to have outstanding prospects. suppose that an investor had selected two of these 400 companies back in 2010. find the probability that at least one of the investor's companies had outstanding prospects. round to seven decimal places.

0.0542438

Step-by-step explanation:

Given : The proportion of  newly formed companies in 2010 appeared to have outstanding prospects :

The number of companies selected : n=2

Using the binomial distribution, the probability of getting success in x trials :-

, where n is the total number of trials and p is the probability of getting success in each trial.

Then , the probability that at least one of the investor's companies had outstanding prospects :-

Hence, the probability that at least one of the investor's companies had outstanding prospects = 0.0542438