combination

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combination

by trangle » Sat Jan 01, 2011 8:39 am
All of the stocks on the over-the-counter market are designated by either a 4-letter or a 5-letter code that is created by using the 26 letters of the alphabet. Which of the following gives the maximum number of different stocks that can be designated with these codes?
a. 2(26^5)
b. 26(26^4)
c. 27(26^4)
d. 26(26^5)
e. 27(26^5)

[spoiler]OA: C[/spoiler]
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by GMATGuruNY » Sat Jan 01, 2011 9:15 am
trangle wrote:All of the stocks on the over-the-counter market are designated by either a 4-letter or a 5-letter code that is created by using the 26 letters of the alphabet. Which of the following gives the maximum number of different stocks that can be designated with these codes?
a. 2(26^5)
b. 26(26^4)
c. 27(26^4)
d. 26(26^5)
e. 27(26^5)

[spoiler]OA: C[/spoiler]
4-letter combinations:
Since we have 26 choices for each letter, there are 26*26*26*26 = 26^4 possible combinations.

5-letter combinations:
Since we have 26 choices for each letter, there are 26*26*26*26*26 = 26^5 possible combinations.

Total possible combinations = total possible 4-letter combinations + total possible 5-letter combinations = 26^4 + 26^5 = (26^4)(1 + 26) = (26^4)*27.

The correct answer is C.
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