Four Percent of the Customers of a Mortgage Company Default

question 93

Multiple Choice

Four percent of the customers of a mortgage company default on their payments. A sample of five customers is selected. What is the probability that exactly two customers in the sample will default on their payments?

• A)0.2592
• B)0.0142
• C)0.9588
• D)0.7408

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Definitions:

Low Birthrates

The situation in which the number of live births per 1,000 people in a population is lower than usual, indicating a decline in fertility.

Potential Soldiers

Individuals who are eligible and might be considered for military service in the event of a need or draft.

Living Standards

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographical area.

Population Growth

The increase in the number of individuals in a population, often measured by the rate at which the number of individuals increases in a specific time period.