Based on Past Experience, a Bank Believes That 6% of the People

question 7

Multiple Choice

Based on past experience, a bank believes that 6% of the people who receive loans will not make payments on time.The bank has recently approved 300 loans.What is the standard deviation of the proportion of clients in this group who may not make timely payments?

• A) \(\sigma = 1.88 \%\)
• B) \(\sigma = 1.41 \%\)
• C) \(\sigma = 1.37 \%\)
• D) \(\sigma = 4.11 \%\)
• E) \(\sigma = 4.24 \%\)

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Definitions:

Left Shift

In programming, the operation of moving bits to the left in a binary number, effectively multiplying the number by a factor of two for each shift.

Quantity Demanded

The total amount of a product or service that consumers are willing and able to purchase at a given price.

Substitute Good

A product or service that consumers can use in place of another product or service, fulfilling a similar need or want.

Complementary

Referring to goods or services that enhance or add value to each other when used or consumed together.