Mathematics, 22.03.2021 22:30 4804102262
The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 4%. The bank will make 2400 loans that are under $10.000 next month. Answer the following. (If necessary, consult a list of formulas.)
(a) Find the mean of p, where p is the proportion of defaults on the 2400 loans under $10,000 to be made next month
.b)Find the standard deviation of p. .
Compute an approximation for PC >0.05), which is the probability that 5% or more of next month's loans under $10,000 will be defaulted on. Round your answer to four decimal places. .
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The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 4...
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