The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 5%. The bank will make 1900loans 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 1900 loans under $10,000 tobe made next month.(b) Find the standard deviation of p.|(c) Compute an approximation for P (p<0.04), which is the probability that 4% or fewer of nextmonth's loans under $10,000 will be defaulted on. Round your answer to four decimal places,ExplanationCheckO 2022 McGraw Hill LLC. AIl Rights Reserved. Terms of Use I Privacy CentMacBookDIIF1080F8F9F7F6F5escF3F4F1F2&

List of formulae : Mean of p^ : μp^ = p Standard deviation of p^ : σp^ = p(1-p)n

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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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…
Suppose a population is known to be normally distributed with a mean, μ, equal to 144 and a standard deviation, σ, equal to 27. Approximately what percent of the population would be between 144 and 198?
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 51.5% 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 20.515), which is the probability that there will be 51.5% or more individuals with IQ scores over 100 in a random sample of 400. Round your answer to four decimal places.
1. The amount of time a Tech student spends on Instagram has an approximately exponential distribution with mean 60 minutes. a. What is the probability a randomly selected student spends less than 45 on Instagram? b. Illustrate your answer from a. using the pdf c. Find the cumulative distribution function for the time students spend on Instagram. d. What is the probability a randomly selected student is on Instagram for a time within 2 standard deviation of the mean?
What is the standard deviation of the following investment: Actual Return Probability 5% 40% 45% 10% -12% -5% 15% 20% ○ 4.6% 12.8% 11.0% 9.2%
I need some help with the following problems on excel.
What is the population standard deviation using the following formula
Empirical research on stock market data indicates that over the course of a year, 60% of stocks go up. A random sample of 600 stocks is going to be chosen at the beginning of next year. Let p be the proportion of the stocks in the sample that go up over the course of a year. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p. 0 (b) Find the standard deviation of p. 0 (c) Compute an approximation for P(p>0.64), which is the probability that more than 64% of the stocks in the sample go up over the course of the year. Round your answer to four decimal places. X 5
Consider the following asset with it's returns over the last 3 years. The arithmetic mean is 8% 1yr 2yr 3yr 8% 4% 6% What is the standard deviation? Respuesta:
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 51.5% 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≥p0.515, which is the probability that there will be 51.5% or more individuals with IQ scores over 100 in a random sample of 400. Round your answer to four decimal places.

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