A Survey of Banks Revealed the Following Distribution for the Interest

question 84

Multiple Choice

A survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment) on a certain date in the past. $$\begin{array} { c | c | c | c | c | c } \text { Interest Rate } & \begin{array} { c } 3.20 \% \\\text { to } \\3.29 \%\end{array} & \begin{array} { c } 3.30 \% \\\text { to } \\3.39 \%\end{array} & \begin{array} { c } 3.40 \% \\\text { to } \\3.49 \%\end{array} & \begin{array} { c } 3.50 \% \\\text { to } \\3.59 \%\end{array} & \begin{array} { c } 3.60 \% \\\text { and } \\\text { above }\end{array} \\\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06\end{array}$$ If a bank is selected at random from this distribution, what is the chance that the interest rate charged
On a home loan will exceed 3.49%?

• A) 0.06
• B) 0.41
• C) 0.59
• D) 1.00

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Definitions:

Top Managers

The highest level of management, responsible for setting strategic goals and ensuring the organization's long-term success.

Long-Term Vision

A strategic outlook that focuses on achieving goals and objectives over an extended period, shaping the future direction of an individual or organization.

Organizational Objectives

The established goals that guide a company or organization's activities and direction, aimed at achieving overall success and fulfillment of its mission.

Cost Containment

Strategies or approaches implemented to control, reduce, or maintain the level of expenses.