Question

4. Question 4 (6 marks) Based on the past experience, it is estimated that five percent...

4. Question 4 Based on the past experience, it is estimated that five percent of the customers of a mortgage company default on their payments. A sample of 20 customers is selected. a. What is the probability that exactly one customer in the sample will default on their payments? [2 marks] b. What is the probability that at least one customer in the sample will default on their payments? [2 marks] c. What is the probability that at most three (i.e., less than or equal to 3) customers in the sample will default on their payments?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Five percent of the customers of a mortgage company default on their payments. A sample of...
Five percent of the customers of a mortgage company default on their payments. A sample of ten customers is selected. What is the probability that exactly three customers in the sample will default on their payments? .0105 .3125 .0006 .1172
QUESTION ONE: (a) Based on past experience, the quality control engineer of Heavy Electrical Limited has...
QUESTION ONE: (a) Based on past experience, the quality control engineer of Heavy Electrical Limited has estimated that the probability of commissioning each project in time at a site is 0.9. The company is planning to commission 5 such projects in the forthcoming year. Find the probability of commissioning: i.)No project ii.) Two projects in time iii.) At most one project in time iv). At least two projects in time v). Find the mean and variance of the above distribution...
It is known that 40 percent of the customers of a mortgage company default on their...
It is known that 40 percent of the customers of a mortgage company default on their payments. A sample of 15 customers is selected. What is the probability that 6 or more customers in the sample will default on their payments
1.What type of probability distribution will most likely be used to analyze the number students that...
1.What type of probability distribution will most likely be used to analyze the number students that successfully transfer in the following problem? The probability that a single transfer student is accepted to Stanford University is 0.3. If 4 students from the same community college apply, what is the probability that no more than 2 are accepted? Group of answer choices a.Poisson distribution b.binomial distribution c.none of the above d.all of the above 2.The Z value is calculated as 1.86 for...
Over the past five years, a stock produced returns of 11 percent, 14 percent, 4 percent,...
Over the past five years, a stock produced returns of 11 percent, 14 percent, 4 percent, -9 percent, and 5 percent. What is the probability that an investor in this stock will not lose more than 10 percent in any one given year? - Greater than .5 but less than 1.0 percent. - Greater than 1 percent but less than 2.5 percent. - Greater than 2.5 percent but less than 16 percent. - Greater than 84 percent but less than...
A stock had returns of 4 percent, 11 percent, 16 percent, -6 percent, and -2 percent...
A stock had returns of 4 percent, 11 percent, 16 percent, -6 percent, and -2 percent for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 20 percent in any one given year? A) Greater than 1 percent but less than 2.5 percent. B) Greater than 2.5 percent but less than 16 percent. C) Greater than .5 percent but less than 1 percent. D) Less than .5 percent. E)...
14. Four percent of the customers of a car dealership buy the most expensive car in...
14. Four percent of the customers of a car dealership buy the most expensive car in the lot. A sample of five customers is selected. What is the probability that exactly two customers in the sample will buy the most expensive car?                 a. 0.2592                              b. 0.7408                             c. 0.9588                              d. 0.0142 I need the solution please
At a particular vehicle service station, tire pressure is routinely checked. Based on past experience, the...
At a particular vehicle service station, tire pressure is routinely checked. Based on past experience, the following distribution has been determined regard the number of underinflated tires a 4-tire vehicle has. # under inflated tires(X) 0 ___1__ _2 ___3__ _4 P(X) _______________0.2 _0.4 _0.25 _0.1_ 0.05 a. If 4 random cars enter the service station (random implies the # underinflated tires is independent car-to-car) what is the probability that at least one of the cars has at least one underinflated...
CO 4) Sixty-seven percent of adults have looked at their credit score in the past six...
CO 4) Sixty-seven percent of adults have looked at their credit score in the past six months. If you select 31 customers, what is the probability that at least 25 of them have looked at their score in the past six months? 0.030 0.970 0.073 0.043
1. If X  is a normal distributed random variable with population mean 5 and population variance 4...
1. If X  is a normal distributed random variable with population mean 5 and population variance 4 , the probability that X  is lies between 1 and 7 is closest or equal to 0.0228 0.8185 0.1815 0.8413 2. Suppose X1  and X2  are both normally distributed random variables with population mean 10 and population variance 4. If X1  and X2   are independent, the probability that average of X1  and X2  lies between 8 and 12 is closest or equal to X2 0.9214 0.0786 0.1572 0.8428 3. A...