The Credit Risk Department of a major bank estimates the default rate on loans under$ 10,000to be4%. The bank will make2400loans that are under$10,000next month.

1. Find the mean ofp, wherepis theproportion of defaults on the2400loans under$10,000to be made next month.
2. Find the standard deviation ofp.
3. Compute an approximation forP(p0.035), which is the probability that3.5%or fewer of next month's loans under$10,000will be defaulted on. Round your answer to four decimal places.