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The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 5%. The bank will make 1900 loans that are under $10,000 next month. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p , where p is the proportion of defaults on the 1900 loans under $10,000 to be made next month. (b) Find the standard deviation of p. (c) Compute an approximation for P (p<0.04), which is the probability that 4% or fewer of next month's loans under $10,000 will be defaulted on. Round your answer to four decimal places,

The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 5%. The bank will make 1900 loans that are under $10,000 next month. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p , where p is the proportion of defaults on the 1900 loans under $10,000 to be made next month. (b) Find the standard deviation of p. (c) Compute an approximation for P (p<0.04), which is the probability that 4% or fewer of next month's loans under $10,000 will be defaulted on. Round your answer to four decimal places,

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 5%. The bank will make 1900 loans that are under $10,000 next month. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p is the proportion of defaults on the 1900 loans under $10,000 to be made next month. (b) Find the standard deviation of p. |(c) Compute an approximation for P (p<0.04), which is the probability that 4% or fewer of next month's loans under $10,000 will be defaulted on. Round your answer to four decimal places, Explanation Check O 2022 McGraw Hill LLC. AIl Rights Reserved. Terms of Use I Privacy Cent MacBook DII F10 80 F8 F9 F7 F6 F5 esc F3 F4 F1 F2 &
Transcribed Image Text:The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 5%. The bank will make 1900 loans that are under $10,000 next month. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p is the proportion of defaults on the 1900 loans under $10,000 to be made next month. (b) Find the standard deviation of p. |(c) Compute an approximation for P (p<0.04), which is the probability that 4% or fewer of next month's loans under $10,000 will be defaulted on. Round your answer to four decimal places, Explanation Check O 2022 McGraw Hill LLC. AIl Rights Reserved. Terms of Use I Privacy Cent MacBook DII F10 80 F8 F9 F7 F6 F5 esc F3 F4 F1 F2 &
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