Credit Rating There is a 1% delinquency rate for consumers with FICO (Fair Isaac & Company) credit rating scores above 800. If the Jefferson Valley Bank provides large loans to 12 people with FICO scores above 800, what is the probability that at least one of them becomes delinquent? Based on that probability, should the bank plan on dealing with a delinquency? 5-14
Credit Rating There is a 1% delinquency rate for consumers with FICO (Fair Isaac & Company) credit rating scores above 800. If the Jefferson Valley Bank provides large loans to 12 people with FICO scores above 800, what is the probability that at least one of them becomes delinquent? Based on that probability, should the bank plan on dealing with a delinquency? 5-14
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question 5-14
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Chapter 5: Probability Distributions
5-14 Credit Rating There is a 1% delingquency rate for consumers with FICO (Fair Isaac &
Company) credit rating scores above 800. If the Jefferson Valley Bank provides large
loans to 12 people with FICO scores above 800, what is the probability that at least one
of them becomes delinquent? Based on that probability, should the bank plan on
dealing with a delinquency?
Genetics Ten peas are generated from parents having the green/yellow pair of genes,
so there is a 0.75 probability that an individual pea will have a green pod. Find the
probability that among the 10 offspring peas, at least nine have green pods. Is it unusual
to get at least nine peas with green pods when ten offspring peas are generated? Why
or why not?
5-15
Poisson Exercises 5-16 through 5-18 involve Poisson distributions. Use Statdisk for these exercises.
Radioactive Decay Radioactive atoms are unstable because they have too much energy.
When they release their extra energy, they are said to decay. When studying Cesium
137, it is found that during the course of decay over 365 days, 1,000,000 radioactive
5-16
atoms are reduced to 977,287 radioactive atoms.
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