1. **State the problem:** We want to find the probability that a randomly selected stock paid dividends.
2. **Identify the data:** From the table:
- Dividends paid and price increased: 40
- Dividends paid and no price increase: 75
- No dividends paid and price increased: 87
- No dividends paid and no price increase: 48
3. **Calculate total stocks:**
$$\text{Total} = 40 + 75 + 87 + 48 = 250$$
4. **Calculate total stocks that paid dividends:**
$$\text{Dividends paid} = 40 + 75 = 115$$
5. **Calculate the probability:**
$$P(\text{Dividends paid}) = \frac{\text{Dividends paid}}{\text{Total}} = \frac{115}{250}$$
6. **Simplify the fraction:**
$$\frac{115}{250} = \frac{\cancel{115}}{\cancel{250}} \rightarrow \text{since 115 and 250 share a common factor 5}$$
$$\frac{115 \div 5}{250 \div 5} = \frac{23}{50}$$
7. **Convert to decimal:**
$$\frac{23}{50} = 0.46$$
**Final answer:** The probability that a randomly selected stock paid dividends is **0.46**.
This corresponds to option A.
Dividend Probability Baf11C
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