Recent difficult economic times have caused an increase in the foreclosure rate of home mortgages. Statistics...

Recent difficult economic times have caused an increase in the foreclosure rate of home mortgages. Statistics from the Penn Bank and Trust Company show their monthly foreclosure rate is now one loan out of every 160 loans. Last month the bank approved 311 loans.

(a)

How many foreclosures would you expect the bank to have last month? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Expected foreclosures

(b)

What is the probability of exactly two foreclosures? (Round your answer to 4 decimal places.)

Probability

(c)

What is the probability of at least one foreclosure? (Round your answer to 4 decimal places.)

Probability

Expert Solution

orchestra answered 2 years ago

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