Mortgages In July 2010, Lender Processing Servicesreported that homeowners were defaulting in record numbers; 12.4% of mortgages were delinquent or in fore-closure. Suppose a large bank holds 1731 adjustable-rate mortgages.a) Can you apply the Central Limit Theorem to describe the sampling distribution model for the sample propor-tion of foreclosures? Check the conditions and discuss any assumptions you need to make.b) Sketch and clearly label the sampling model, based onthe 68–95–99.7 Rule. c) How many of these homeowners might the bank ex-pect will default on their mortgages? Explain.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
reported that homeowners were defaulting in record
closure. Suppose a large bank holds 1731 adjustable-rate
a) Can you apply the Central Limit Theorem to describe
tion of foreclosures? Check the conditions and discuss
b) Sketch and clearly label the sampling model, based on
the 68–95–99.7 Rule.
pect will default on their mortgages? Explain.
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