Historically, the Default Rate on a Certain Type of Commercial

question 8

Multiple Choice

Historically, the default rate on a certain type of commercial loan is 20 percent. If a bank makes 100 of these loans, what is the approximate probability that at least 26 will result in default?

• A)0.2000
• B)0.0668
• C)0.0846
• D)0.0336

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Definitions:

Murdering

The act of unlawfully killing another human being with premeditated intent.

Sexual Masochism

Being humiliated, beaten, bound, or otherwise made to suffer.

Psychological Harm

Emotional or mental injury inflicted on a person due to abusive, violent, or traumatic experiences, leading to lasting effects on the individual's mental health.

Humiliated

The feeling of shame, embarrassment, or degradation experienced after being put down by others or oneself.