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:

Synchronicity

Synchronicity is a concept introduced by Carl Jung that refers to events that are meaningfully related, yet not causally connected, suggesting a deeper order in the universe.

Diachronic

Pertaining to the study of phenomena, such as languages, as they change over time.

Class Consciousness

The awareness and understanding individuals have of their place in a class structure, specifically recognizing common vested interests and the need for collective political action.

Objective Economic

typically refers to economic analyses or conditions that are based on factual, measurable data rather than personal feelings or opinions.