Historical Data Collected at the Commonwealth Bank in Sydney Revealed

question 45

Essay

Historical data collected at the Commonwealth Bank in Sydney revealed that 80% of all customers applying for a loan are accepted. Suppose that 50 new loan applications are selected at random.
a. Find the expected value and the standard deviation of the number of loans that will be accepted by the bank.
b. What is the probability that at least 42 loans will be accepted?
c. What is the probability that the number of loans rejected is between 10 and 15, inclusive?

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Definitions:

Noncore Business

Parts of a company's operations that are not essential to its main line of business or primary revenue source.

Accounting

The practice of recording, classifying, and summarizing financial transactions to provide useful financial information for decision-making.

Production

The process of creating goods and services using labor, machinery, and resources to meet consumer demand.

Compressed Workweek

A work schedule that allows employees to work longer hours on fewer days of the week.