In economic theory, a "hurdle rate" is the minimum return that a person requires before they will make an investment. A research report says that annual returns from a specific class of common equities are distributed according to a normal distribution with a mean of 12 percent and a standard deviation of 18 percent. A stock screener would like to identify a hurdle rate such that only 1 in 20 equities is above that value. Where should the hurdle rate be set? 5. Keith's Florists has 15 delivery trucks, used mainly to deliver flowers and flower arrangementsin the Greenville, South Carolina, area. Of these 15 trucks, 6 have brake problems.A sample of 5 trucks is randomly selected. What is the probability that 2 of those tested have defective brakes? B. what is the probability none have defective brakes?

6. The Computer Systems Department has 8 faculty, 6 of whom are tenured. Dr. Vonder, the chairman, wants to establish a committee of 3 department faculty members to review the curriculum. If she selects the committee at random: a. What is the probability all members of the committee are tenured? b. What is the probability that at least one member is not tenured? (Hint: For this question, use the complement rule.) 7. Automobiles arrive at the Elkhart exit of the Indiana Toll Road at the rate of two per minute. The distribution of arrivals approximates a Poisson distribution. a. What is the probability that no automobiles arrive in a particular minute? b. What is the probability that at least one automobile arrives during a particular minute? 8. Ms. Bergen is a loan officer at Coast Bank and Trust. From her years of experience, she estimates that the probability is .025 that an applicant will not be able to repay his or her installment loan. Last month she made 40 loans. a. What is the probability that 3 loans will be defaulted? b. What is the probability that at least 3 loans will be defaulted?