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Manulife Bank thoroughly Manulife Bank thoroughly investigates its applicants for small home-improvement loans. Their default record is very impressive: the probability that a homeowner will

Manulife Bank thoroughly

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Manulife Bank thoroughly investigates its applicants for small home-improvement loans. Their default record is very impressive: the probability that a homeowner will default is only 0.005. The bank has approved 300 small home-improvement loans. Required: (Assuming the Poisson probability distribution applies to this project) a. What is the probability that NO homeowners out of the 300 will default? b. What is the probability that 3 or more homeowners will default

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