Ms. Bergen is a loan officer at Coast Bank and Trust. From her years of experience, she estimates that the probability is 0.25 that an applicant will not be able to repay his or her installment loan. Last month she made 40 loans. What is the probability that three loans will be defaulted? What is the probability that at-least three loans will be defaulted?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Q#5: Ms. Bergen is a loan officer at Coast Bank and Trust. From her years of experience, she estimates that the
What is the probability that three loans will be defaulted?
What is the probability that at-least three loans will be defaulted?
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