Question

A banking corporation advertises that 80% of the loan applications it receives are approved within 24 hours. Assuming this is true, given a simple random sample of 100 loan applications, what are the probability that at least 75 and no more than 85 of them are approved within 24 hours?

a)0.8321

b)0.0875

c)0.1314

d)0.9125

e)0.8715

Answer 1

This is a binomial distribution question with

n = 100

p = 0.80

q = 1 - p = 0.2

This binomial distribution can be approximated as Normal distribution since

np > 5 and nq > 5

Since we know that