Customers at the Bank of Commerce of Idaho Falls, Idaho, default at a rate of .005 on

Question:

Customers at the Bank of Commerce of Idaho Falls, Idaho, default at a rate of .005 on small home-improvement loans. The bank has approved 400 small home-improvement loans.
Assuming the Poisson probability applies to this problem:
a. What is the probability that no homeowners out of the 400 will default?
b. How many of the 400 are expected not to default?
c. What is the probability that three or more homeowners will default on their small home- improvement loans?

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...