Question: Based on the past experience, it is estimated that five percent of the customers of a mortgage company default on their payments. A sample of

Based on the past experience, it is estimated that five percent of the customers of a mortgage company default on their payments. A sample of 20 customers is selected.

a. What is the probability that at least one customer in the sample will default on their payments?

b. What is the probability that at most three (i.e., less than or equal to 3) customers in the sample will default on their payments?

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