A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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A bank determines that 10% of all borrowers default loans. Answer the following questions, when, in a given month, 15 loans are defaulted. Let X be the number of defaulted loans.
a. What is the probability that no loans are defaulted? Show your calculations.
b. What is the probability that less than two loans are defaulted? Show your calculations.
c. What is the probability that more than three loans are defaulted? Show your calculations.

Expert Solution
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Givenp=0.10sample size(n)=15Let "x" be the no.of loans are defaultedx~Binomial(n=15,p=0.10)P(X=x)=(nx)×px×(1-p)n-x                      , x=0,1,...,n

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