4. A credit rating company recommends granting of credit cards based on severalcriteria. One is annual income. If the annual income of applicants is normally dis-tributed with mean $22,000 and standard deviation $4,800 and the companyrecommends no applicant unless his or her income exceeds $15,000, what fractionof the applicants are denied on this basis?

The probability value for Z (-1.4583), according to the cumulative probability table, the…

Answered: 4. A credit rating company recommends…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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If the contract annual interest rate on a $2,880,000 fixed rate loan that is fully amortizing over 20 years with equal monthly payments is 6.25%, what is the effective yield to the lender if the lender charges 1.5% as an origination fee, $288 for a credit report and $3,080 for an appraisal fee and the loan is repaid after ten years? a. 6.25% b. 6.51% c. 6.46% d. 6.49%
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