Question: ABC bank reviewed external operational loss data for retail banking divisions of similar-sized banks in the industry. The data revealed new flaws in independent processes

ABC bank reviewed external operational loss data for retail banking divisions of similar-sized banks in the industry. The data revealed new flaws in independent processes within retail banking that may lead to loss events. Guided by the external loss database, the OR coordinator at ABC picks three randomly selected processes applied by the retail banking division. Assume that the processes are independent. What is the probability that 2 out of 3 processes will be flawed if the probability of detecting a flaw is 4%? Select one: a. 0.0046 b. 0.00721 c. None of the answers provided is correct. d. 0.00639 e. 0.00794

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