Question: 9 . ( Ch 75 ) Historically , the default rate on a commercial loan is 20 percent If a bank makes 100 commercial loans

9 . ( Ch 75 ) Historically , the default rate on a commercial loan is 20 percent If a bank makes 100 commercial loans , what is the approximate probability that more than 25 will result in default ? Hint : use normal approximation to the Binomial . And by continuity correction , you should use the midpoint between 25 and 26 as the new cutoff 2 0.2000 6 0 06 68 C. 0 0838 1 0.0336

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