High street banks all over the world have increased their credit checking methods and as a...
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High street banks all over the world have increased their credit checking methods and as a result the number of customers coming to the bank who already have a loan they cannot finance has increased significantly. New records indicate that this probability is now 0.07. Suppose that on a given day 28 customers visit the branch of a single high street bank. Assume that the number of customers that the bank detects as having exceeded their credit limit is distributed as a binomial random variable. a) What are the mean and standard deviation of the number of customers exceeding their credit limits? b) What is the probability that zero customers will exceed their limits? c) What is the probability that one customer will exceed his or her limit? d) What is the probability that two or fewer customers will exceed their limits? High street banks all over the world have increased their credit checking methods and as a result the number of customers coming to the bank who already have a loan they cannot finance has increased significantly. New records indicate that this probability is now 0.07. Suppose that on a given day 28 customers visit the branch of a single high street bank. Assume that the number of customers that the bank detects as having exceeded their credit limit is distributed as a binomial random variable. a) What are the mean and standard deviation of the number of customers exceeding their credit limits? b) What is the probability that zero customers will exceed their limits? c) What is the probability that one customer will exceed his or her limit? d) What is the probability that two or fewer customers will exceed their limits?
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Answer Explanation i Let X be number of customers exceeding their credit ... View the full answer
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date:
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