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1. A bank has had to repossess 100 homes. Fifty of these repossessed homes are expected...

1. A bank has had to repossess 100 homes. Fifty of these repossessed homes are expected to have market values that are less than the outstanding balance on the mortgage. An auditor randomly selects 10 different repossessed homes and records the number of homes which have market values less than the outstanding balance of the mortgage. What is the probability that all of the audited homes will have a market value less than the outstanding balance of the mortgage?

I need to answer in Minitab

Math   Statistics-And-Probability   
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Answer #1

Fifty of the repossessed homes are expected to have market values that are less than the outstanding balance on the mortgage.

Hence, the probability that an audited homes will have a market value less than the outstanding balance of the mortgage = 50/100 = 0.5

The probability that all of the 10 audited homes will have a market value less than the outstanding balance of the mortgage = = 0.000977

In Minitab Binomial probability, provide, n = 10, x = 10, p = 0.5.

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