The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 1%. The bank will make 1100 loans that are under$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 1100 loans under $10,000 to be made next month.(b) Find the standard deviation of p.(c) Compute an approximation for P p <0.02), which is the probability that 2% or fewer of next month's loans under $10,000will be defaulted on. Round your answer to four decimal places.

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Answered: The Credit Risk Department of a major…

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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The population of Ada County, Idaho has been steadily increasing for more than 20 years. The table below shows the population (people) from 2015 through 2019 in Ada County. year 2015 2016 2017 2018 2019 population 432,862 444,486 456,548 468,764 481,587 a. What is the average rate of change in the population of Ada County from 2015 to 2018? Round to the nearest whole person and include units. b. What is the average rate of change in the population of Ada County from 2016 to 2018? Round to the nearest whole person and include units. c. What is the average rate of change in the population of Ada County from 2017 to 2018? Round to the nearest whole person and include units. d. What is the average rate of change in the population of Ada County from 2018 to 2019? Round to the nearest whole person and include units. e. Give a good approximation for the rate at which the population of Ada County is growing by the end of 2018? Round to the nearest whole person and include units.
Pax World Balanced is a highly respected, socially responsible mutual fund of stocks and bonds. Vanguard Balanced Index is another highly regarded fund that represents the entire U.S. stock and bond market (an index fund). The mean and standard deviation of annualized percent returns are shown below. The annualized mean and standard deviation are for a recent 10-years period.†. If x represents return and s represents risk, then explain why the coefficient of variation can be taken to represent risk per unit of return. From this point of view, which fund appears to be better? Explain. A. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Pax fund appears to be better because the CV is smaller. B. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Vanguard fund appears to be better because the CV is smaller. C. Since the CV is s/x we can say that the CV represents the risk per unit of return; the Pax fund…
One year consumers spent an average of $22 on a meal at a resturant. Assume that the amount spent on a resturant meal is normally distributed and that the standard deviation is $3. Complete parts (a) through (c) below. Between what two values will the middle 95% of the amounts of cash spent fall?
Juan makes a measurement in a chemistry laboratory and records the result in his lab report. The standard deviation of students lab measurements is o= 8 milligrams. Juan repeats the measurement 2 times and records the mean x of his 2 measurements. What is the standard deviation of Juan's mean result?
Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns? 11.27 percent 13.05 percent 13.59 percent 15.08 percent 14.40 percent
Suppose you have already calculated the mean, the average deviation, and the standard deviation of the weights in pounds of 20 third-graders. a. if these weights were converted to kilograms and the mean and the average deviation were once again calculated, would the second average deviation be (numerically) less than, greater than, or equal to the first average deviation? Explain your answer. b. If the standard deviation of these weights were calculated in kilograms, would it be (numerically) less than, greater than, or equal to the first standard deviation? Explain your answer
A researcher wants to investigate the effects of environmental factors on IQ scores. For an initial study, she takes a sample of 400 people who grew up as the only child. She finds that 49.5% of them have an IQ score over 100. It is known that 50% of the general population has an IQ score exceeding 100. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p is the proportion of people with IQ scores over 100 in a random sample of 400 people. (b) Find the standard deviation of p. |(c) Compute an approximation for P(p 20.495), which is the probability that there will be 49.5% or more individuals with IQ scores over 100 in a random sample of 400. Round your answer to four decimal places.
Find the indicated IQ score. The graph to the right depicts IQ scores of adults, and those scores are normally distributed with a mean of 100 and a standard deviation of 15. Click to view page 1 of the table. Click to view page 2 of the table. The indicated IQ score, x, is (Round to one decimal place as needed.)
Find the mean and standard deviation for each Poisson: a. A = 6 (Round your standard deviation to 3 decimal places.) Mean Standard deviation b. A = 18 (Round your standard deviation to 3 decimal places.) Mean Standard deviation c. A = 3 (Round your standard deviation to 3 decimal places.) Mean Standard deviation
Now use the binomial formulas below to find the mean and standard deviation when n = 5 and p = 0.02.
In some reports, the mean and coefficient of variation are given. For instance, one report gives the average number of physician visits by males per year. The average reported is 2.6, and the reported coefficient of variation is 2.3%. Use this information to determine the standard deviation of the annual number of visits to physicians made by males. (Round your answer to three decimal places.)

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