According to the Mortgage Bankers Association of America, the foreclosure rate on home mortgages in 2007 was

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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)
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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