The Credit Risk Department of a major bank estimates the default rate on loans under s10,000 to be s%. The bank will make 1900 loans that are under 00 $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 1900 loans under s10,000 to be made next month. (b) Find the standard deviation of p. (c) Compute an approximation for P(6<0.06), which is the probability that 6% or fewer of next month's loans under s10,000 will be defaulted on. Round your answer to four decimal places.

Suppose the mean monthly return on a T-Bill is 0.5% with a standard deviation of 0.58%. Sup-pose we have another investment Y with a 1.5% mean monthly return and standard deviationof 6%. Which of the two investments o ers less risk in terms of investment.

Today, the waves are crashing onto the beach every 5.6 seconds. The times from when a person arrives at the shoreline until a crashing wave is observed follows a Uniform distribution from 0 to 5.6 seconds. Round to 4 decimal places where possible. a. The mean of this distribution is b. The standard deviation is c. The probability that wave will crash onto the beach exactly 0.7 seconds after the person arrives is P(x = 0.7) = d. The probability that the wave will crash the beach between 1.6 and 5.1 seconds after the person arrives is P(1.6 3.72) = f. Suppose that the person has already been standing at the shoreline for 0.8 seconds without a wave crashing in. Find the probability that it will take between 1.4 and 3.3 seconds for the wave to crash onto the shoreline. g. 65% of the time a person will wait at least how long before the wave crashes in? seconds. h. Find the minimum for the upper quartile. seconds.

A population has a standard deviation ? of 25 units. (Give your answers correct to two decimal places.) (a) Find the standard error for the mean if n = 30.(b) Find the standard error for the mean if n = 46.(c) Find the standard error for the mean if n = 71.

A queueing system has an arrival rate of 37 visitors per day (standard deviation of 32) and a service rate of 42 visitors per day (standard deviation of 25). (Round your answer to three decimal places.) What is the coefficient of variation of the arrival rate?

The figure in the popup​ window, shows the​ one-year return distribution for RCS stock.​ Calculate: a. The expected return. b. The standard deviation of the return. Note​: Make sure to round all intermediate calculations to at least five decimal places.

Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p gives the proportion of the 600 stocks that went up yesterday that will go up today. (b) Find the standard deviation of p. (c) Compute an approximation for P(p <0.58), which is the probability that fewer than 58% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places.

A Scenario: Jimmy store sells large tins of Tom Tucker Coffee. The deli uses a periodic review system. Inventory is checked every 10 days which more orders are needed for tins. Order lead time is 3 days. Average demand is 7 tins, so average demand during the reorder period and order lead time (13) is 91 tins. Standard deviation of demand during the same 13 day period is 17 tins.1. Calculate the restocking level ( Assume the desired level is 90%)2. Suppose standard deviation of demand during the 13-day period drops to 4 tins. What happened to restocking level? Explain why?3. Draw a saw-tooth diagram. Beginning inventory level is equal to restocking level and the demand rate is a constant 7 tins per day. What is the safety stock level? What is the average inventory level?

Andrew plans to retire in 40 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that over the entire 20th century, the real (that is, adjusted for inflation) annual returns on U.S. common stocks had mean 8.7% and standard deviation 20.2%. The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. What is the probability (assuming that past pattern of variation continues) that the mean annual return on common stocks over the next 40 years will exceed 10%? What is the probability that the mean return will be less than 5%?

I need help with this questions with explanation.