Question

Based on past experience, a bank believes that 9 % of the people who receive loans will not make payments on time. The bank has recently approved 200 loans.

What assumptions must be true to be able to approximate the
sampling distribution with a normal model? Assumptions:

Incorrect

What are the mean and standard deviation of this model? mean
=

Correct standard deviation (accurate to 3 decimal places) =

Incorrect

What is the probability that over 10% of these clients will not
make timely payments?

Incorrect

Answer #1

Solution :

Given that ,

p = 0.09

1 - p = 0.91

n = 200

Mean :

= p = **0.09**

Standard deviation:

=
(p*(1-p))/n = (0.09*0.91)/
200= **0.020**

P( > 0.10) = 1 - P( < 0.10)

= 1 - P(( - ) / < (0.10-0.09) /0.020 )

= 1 - P(z < 0.05)

= 1 - 0.5199

**= 0.4801**

**Probability = 0.4801**

Based on past experience, a bank believes that 8 % of the people
who receive loans will not make payments on time. The bank has
recently approved 200 loans.
A. What must be true to be able to approximate the sampling
distribution with a normal model? (Hint: think Central Limit
Theorem) Assumptions:
B. What are the mean and standard deviation of this model?
mean =
standard deviation (accurate to 3 decimal places) =
C. What is the probability that over...

Based on past experience, a bank believes that 8 % of the people
who receive loans will not make payments on time. The bank has
recently approved 200 loans.
What must be true in order to approximate the sampling
distribution with a normal model?
What are the mean and standard deviation of this model? mean
=
standard deviation (accurate to 3 decimal places) =
What is the probability that over 10% of these clients will not
make timely payments?

Based on past experience, a bank believes that 9.3 % of the
people who receive loans will not make payments on time. The bank
has recently approved 240 loans. What must be true to be able to
approximate the sampling distribution with a normal model? Before
proceeding, think about whether the conditions have been met. What
are the mean and standard deviation of the sampling distribution of
the proportion of people who will not make payments on time in
samples...

Based on past experience, a bank believes that 11 % of the
people who receive loans will not make payments on time. The bank
has recently approved 100 loans. Answer the following questions.
a) What are the mean and standard deviation of the proportion of
clients in this group who may not make timely payments? mu left
parenthesis ModifyingAbove p with caret right parenthesis
equalsnothing.

Based on past experience, a bank believes that 11% of the
people who receive loans will not make payments on time. The bank
has recently approved 300 loans.
What is the probability that over 14% of these clients will not
make timely payments?

Based on past experience, a bank believes that 7% of the people
who receive loans will not make payments on time. The bank has
recently approved 250 loans. What is the probability that between
4% and 6% of these clients will not make timely payments?

Libraries in North Dakota receive funding based on the number of
people who join the library. To determine the number of people who
joined the library, one library day is selected at random and the
number of people who joined that day is counted and used for
funding purposes. The daily number of no registration is
approximately normally distributed with mean 120 students and
standard deviation 10.5 students.
(a) If more than 140 people are not joining on the day...

Start with the Excel spreadsheet Insurance Company
An insurance company, based on past experience, estimates the
mean damage for a natural disaster in its area is $5,000. After
introducing several plans to prevent loss, it randomly samples 200
policyholders and finds the mean about per claim was $4,800 with a
standard deviation of $1,300. Does it appear that prevention plans
were effective in reducing the mean amount of a claim? Use a 0.05
significance level. Use this information to determine...

Problem 4) In 2012, the percent of American adults who owned
cell phones and used their cell phone to send or receive text
messages was at an all-time high of 80%. Assume that 80% refers to
the population parameter π. More recently in 2016, a polling firm
contacts a simple random sample of 110 people chosen from the
population of cell phone owners. The firm asks each person “do you
use your cell phone to send or receive texts? Yes...

1. Under the requirements of the Basel Accords, a bank that
holds a higher
share of its total assets as consumer loans relative to government
securities will be required to
hold capital compared to a bank that holds a lower share of
consumer loans to government
securities.
A. more
B. less
C. the same
2.) Which of the following is a reason why the sub-prime
mortgage market
expanded significantly over the period 2001-2007?
A. High investor demand for safer assets...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 18 minutes ago

asked 21 minutes ago

asked 36 minutes ago

asked 40 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago