Based on Past Experience, a Bank Believes That 4% of the People

question 14

Multiple Choice

Based on past experience, a bank believes that 4% of the people who receive loans will not make payments on time.The bank has recently approved 300 loans.What is the mean of the proportion of clients in this group who may not make timely payments?

• A) \(\mu = 4 \%\)
• B) \(\mu = 3.46 \%\)
• C) \(\mu = 1.1 \%\)
• D) \(\mu = 2 \%\)
• E) \(\mu = 12 \%\)

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Definitions:

Innate Concept

A cognitive theory suggesting that some knowledge or concepts are inherent and not acquired through experience.

Justice

The principle of fairness and the moral rightness of actions and laws within society, often associated with the distribution of resources and treatment of individuals.

Scientifically Appropriate Methods

These are techniques and procedures accepted by the scientific community as being accurate and replicable in research or experimentation.

Critical Thinking

Engaging in a detailed investigation and judgment of a situation to form an assessment.