Based on past experience, a bank believes that 7% of the people who receive loans will not

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Based on past experience, a bank believes that 7% of the people who receive loans will not make payments on time. The bank has recently approved 200 loans.

a) What are the mean and standard deviation of the proportion of clients in this group who may not make timely payments?

b) What assumptions underlie your model? Are the conditions met? Explain.

c) What’s the probability that over 10% of these clients will not make timely payments?

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Business Statistics

ISBN: 9780321925831

3rd Edition

Authors: Norean Sharpe, Richard Veaux, Paul Velleman

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Question Posted: May 14, 2015 09:19 AM

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Based on past experience, a bank believes that 7% of the people who receive loans will not

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