The Manager for State Bank and Trust Has Recently Examined

question 102

Multiple Choice

The manager for State Bank and Trust has recently examined the credit card account balances for the customers of her bank and found that 20% have an outstanding balance at the credit card limit. Suppose the manager randomly selects 15 customers and finds 4 that have balances at the limit. Assume that the properties of the binomial distribution apply. What is the probability of finding 4 customers in a sample of 15 who have "maxed out" their credit cards?

• A) 0.1876
• B) 0.8358
• C) 0.6482
• D) 0.3832

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Definitions:

Eastman Kodak Co.

A renowned multinational corporation known for its extensive contributions to photography and imaging technology.

Monopoly Power

The ability of a single seller to control the market for a good or service, enabling them to determine the price and conditions of sale.

Sherman Act

A foundational United States antitrust law aimed at regulating competition among enterprises.

Clayton Act

A U.S. antitrust law passed in 1914, aimed at promoting fair competition and preventing unfair business practices.