Consider all of a class companies with a similar probability of default. Assume that the probability that any one defaults is independent of the probability that the others default. If we expect that three companies will default on their debt in March 2023. What is the approximate probability that no more than 1 does? Explain.

Q: The probabilities that stock A will rise in price is 0.7 and that stock B will rise in price is 0.6.…

A: Given that P(A)=0.7, P(B)=0.6 and P(A|B)= 0.8 We have to find P(A and Bc)=?

Q: uppose the probability that it will rain tomorrow is 0.66. What is the probability that it will not…

A: We will use the complement property of probability

Q: Suppose the probability that it will rain tomorrow is 0.40. What is the probability that it will not…

A:

Q: The probabilities that a student will receive an A, B, C or D grade are 0.4, 0.3, 0.2 and 0.1…

A: Given that, the probabilities that a student will receive an A, B, C or D grade are 0.4, 0.3, 0.2…

Q: Every day, Rick either gains two pounds (with probability 1/2 ) or loses one pound (with probability…

A: Given that Every day, Rick either gains two pounds (with probability 1/2 ) or loses one pound (with…

Q: It is estimated that 3.6% of the general population will live past 90th birthday.  In a graduating…

A: From the provided information, It is estimated that 3.6% of the general population will live past…

Q: The probability that a patient recovers from a delicate heart operation is 0.9. What is the…

A: Let us denote X=the number of patients having the operation surviven=sample size=7p=probability of…

Q: You have relatives coming for dinner this weekend.  The probability that your uncle Josiah will show…

A: Given Data: Let A be the event that your uncle Josiah will show up Let B be the event that your aunt…

Q: An investor believes that on a day when the Dow Jones Industrial Average (DJIA) increases, the…

A: The probability that Dow Jones Industrial Average (DJIA) and NASDAQ increases is 0.77. There is a…

Q: Suppose on a given day, there is a 23% chance Emily will forget her wallet when going to work. What…

A: Introduction: Denote X as the random variable of interest here, which is the number of days that the…

Q: Suppose the probability that it will rain tomorrow is 0.44. What is the probability that it will not…

A:

Q: In each trial of an experiment, an error occurs with probability 0.15. An error is a major error…

A:

Q: Suppose that 40% of people own dogs. If you pick two people at random, what is the probability that…

A: Given that n = 2 ,p =0.4 P ( x =2 ) =?

Q: Suppose that the prevalence of diabetes in the U.S. is 10% and that the prevalence of cardiovascular…

A: Solution: Let A be event that a person in the U.S has diabetes and B be the event that a person in…