Use the following information for questions 25 and 26

The probability that a credit score is equal to or higher than 700 is 0.45. The probability that a mortgage will be approved given a credit score of 700 or higher is 0.6.The probability that a mortgage application will be denied given a credit score of less than 700 is 0.8.

1. What is the probability a random mortgage application will be approved?
   1. 0.38
   2. 0.55
   3. 0..25
   4. 0.87

1. What is the probability a credit score was 700 or above given that the mortgage application was approved?
   1. 0.35
   2. 0.49
   3. 0.71
   4. 0.29

1. Apex Bakery would like you to recommend how many loaves of bread to make at the beginning of the day. Each loaf costs $3.00 and can be sold for $6.00. Loaves left over are given to charity. Research has shown that the probabilities for demand of 25, 50, and 75 loaves are 25%, 5%, and 70%, respectively. Make a recommendation to Apex on whether to bake 25, 50 or 75 loaves each morning. Which strategy is most profitable?

Hint: Profit = Revenue-Costs, also revenue is based on the number of loaves sold, which is the minimum of the supply of loaves and eventual demand.

1. Most profitable to bake 25 loaves
2. Most profitable to bake 50 loaves
3. Most profitable to bake 75 loaves
4. Both A and B are correct

For questions 28-30, the HR department at a company has established that the probability an intern is offered a permanent position is 0.65. Ten interns start in the fall semester. Assume binomial distribution.

1. How many of those interns (on average, where decimals are acceptable) do you expect to be offered a full time position?
   1. 4
   2. 8
   3. 6.5
   4. 2.8

1. What is the probability that no more than 5 interns are offered full time positions?
   1. 0.9987
   2. 0.2485
   3. 0.7064
   4. 0.4278

1. What is the probability that 4 interns are offered a full time position?
   1. 0.0689
   2. 0.2936
   3. 0.5000
   4. 0.6500