To See Whether a Bank Has Enough Minority Construction Company

question 11

Multiple Choice

To see whether a bank has enough minority construction company loans, a social agency selects 31 loans to construction companies at random and finds that 4 of them are loans to minority companies. If the bank's claim that 10 of every 100 of its loans to construction companies are minority loans is true, what is the probability that 4 loans out of 31 are minority loans? Leave your answer with combination symbols. ​

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Definitions:

Deadweight Loss

The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved in a market.

Sales Tax

A tax imposed by a government on sales of goods and services, typically calculated as a percentage of the sale price.

Deadweight Loss

An economic inefficiency that occurs when a market does not reach equilibrium, leading to a loss of total social welfare.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.