Question: According to Experian 2 5 of carloan payments were 30 days

According to Experian, 2.5% of carloan payments were 30 days past due in 2012, the lowest percentage since 2007. Lenders prefer auto loans to home mortgages because, when borrowers get into financial trouble, they tend to pay the auto loan first because cars are more easily seized by banks. A random sample of 24 car loans was randomly selected.
a. Use the binomial distribution to determine the probability that exactly one loan is 30 days past due from this sample.
b. Use the binomial distribution to determine the probability that exactly four loans are 30 days past due from this sample.
c. Use the Poisson distribution to determine the probability that exactly one loan is 30 days past due from this sample.
d. Use the Poisson distribution to determine the probability that exactly four loans are 30 days past due from this sample.

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  • CreatedJuly 17, 2015
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