Question

In: Statistics and Probability

Based on past​ experience, a bank believes that 88​% of the people who receive loans will...

Based on past​ experience, a bank believes that

88​%

of the people who receive loans will not make payments on time. The bank has recently approved

300

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 parenthesisμpequals=

SD left parenthesis ModifyingAbove p with caret right parenthesisSDpequals=

​(Round to three decimal places as​ needed.)

​b) What assumptions underlie your​ model? Are the conditions​ met?

A.

With reasonable assumptions about the​ sample, all the conditions are met.

B.

The randomization and​ success/failure conditions are not met.

C.

The randomization and​ 10% conditions are not met.

D.

The randomization condition is not met.

E.

The​ 10% condition is not met.

F.

The​ 10% and​ success/failure conditions are not met.

G.

The​ success/failure condition is not met.

H.

Without unreasonable​ assumptions, none of the conditions are met.

​c) What is the probability that over

10​%

of these clients will not make timely​ payments?

Upper P left parenthesis ModifyingAbove p with caret greater than 0.1 right parenthesisPp>0.1equals=nothing

Solutions

Expert Solution

orchestra answered 1 year ago
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