The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 1%. A random sample of 1100 new loans that are under $10,000 is going to be selected. Let p be the proportion of defaults on the loans in the sample. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p. |(b) Find the standard deviation of p. (c) Compute an approximation for P(p 20.02), which is the probability that 2% or more of the loans in the sample will be defaulted on. Round your answer to four decimal places.

The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 1%. A random sample of 1100 new loans that are under $10,000 is going to be selected. Let p be the proportion of defaults on the loans in the sample. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p. |(b) Find the standard deviation of p. (c) Compute an approximation for P(p 20.02), which is the probability that 2% or more of the loans in the sample will be defaulted on. Round your answer to four decimal places.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.5: Comparing Sets Of Data

Problem 4CYU

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