The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 5%. The bank will make 1900 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 1900 loans under $10,000 to be 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 more of next month's loans under$10,000 will be defaulted on. Round your answer to four decimal places.

Answered: The Credit Risk Department of a major…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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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.
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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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