Based on Past Experience, a Bank Believes That 7% of the People

question 15

Multiple Choice

Based on past experience, a bank believes that 7% of the people who receive loans will not make payments on time.The bank has recently approved 300 loans.What is the probability that over 8% of these clients will not make timely payments?

• A)0.752
• B)0.504
• C)0.248
• D)0.68
• E)0.496

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Definitions:

Stanley Milgram

An American psychologist known for his research on obedience to authority figures, demonstrated in the Milgram experiment.

Structuralist

An approach in psychology that seeks to analyze the structure of the mind by breaking down mental processes into their simplest components.

Functionalist

Pertains to a school of thought in psychology that emphasizes the purpose and adaptive functions of human behavior.

Equal Status

A condition or situation in which all individuals or groups are given the same rights, opportunities, and respect without discrimination or bias.