Recent difficult economic times have caused an increase in the foreclosure rate of home mortgages. Statistics from the Penn Bank and Trust Company show their monthly foreclosure rate is now 1 loan out of every 136 loans. Last month the bank approved 300 loans.
a. How many foreclosures would you expect the bank to have last month?
b. What is the probability of exactly two foreclosures?
c. What is the probability of at least one foreclosure?