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Question 1       (2 marks) A bank found that 37% of its loans to new small businesses...

Question 1      

A bank found that 37% of its loans to new small businesses become delinquent.

  1. If 9 small businesses are selected randomly from the bank’s files, what is the probability that at least 3 of them are delinquent?
  2. If 90 small businesses are selected randomly from the bank’s files, what is the probability that at least 30 of them are delinquent?
Math   Statistics-And-Probability   
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Answer #1

a) Probability that at least 3 of the 9 small businesses are delinquent is computed here as:

Therefore 0.7076 is the required probability here.

b) Given that 90 businesses are there, probability that at least 30 of them are delinquent is computed here as:

Therefore 0.7957 is the required probability here.

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