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
icon
Related questions
Question
100%
Question 5-14
Page <
10
of 261
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.
99+
Desktop
73°F Sunny
DELL
Transcribed Image Text:Page < 10 of 261 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. 99+ Desktop 73°F Sunny DELL
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman