The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 4%. The bank will make 2400 loans that are under $10,000 next month. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, wherep is the proportion of defaults on the 2400 loans under $10,000 to be made next month. (b) Find the standard deviation of p. (c) Compute an approximation for P(p 20.03), which is the probability that 3% or more of next month's loans under $10,000 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 4%. The bank will make 2400 loans that are under $10,000 next month. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, wherep is the proportion of defaults on the 2400 loans under $10,000 to be made next month. (b) Find the standard deviation of p. (c) Compute an approximation for P(p 20.03), which is the probability that 3% or more of next month's loans under $10,000 will be defaulted on. Round your answer to four decimal places.

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Description: The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 4%. The bank will make 2400 loans that are under$10,000 next month.Answer the following. (If necessary, consult a list of formulas.)(a) Find the mean

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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