A bank has had to repossess 100 homes. Fifty of these repossessed homes are expected to have market values that are less than the outstanding balance on the mortgage. An auditor randomly selects 10 different repossessed homes and records the number of homes that have market values less than the outstanding balance of the mortgage. What is the probability that all of the audited homes will have a market value less than the outstanding balance of the mortgage? (Source: Unknown – 325HM?)

Answer rating: 100% (QA)

Let X number of homes out of a sample of size 10 which have market values less than the outstanding ... View the full answer