According to the Mortgage Bankers Association of America the foreclosure
According to the Mortgage Bankers Association of America, the foreclosure rate on home mortgages in 2007 was 2%. Assuming that this rate is applicable to a community where 500 homes have mortgages, use the Poisson approximation to the binomial distribution to determine the following for x = the number of foreclosures in this community during the coming year:
a. E(x)
b. P(x = 7)
c. P(x = 10)
d. P(x ≤ 12)
e. P(8 ≤ x ≤ 15)
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