Four Percent of the Customers of a Mortgage Company Default

question 93

Multiple Choice

Four percent of the customers of a mortgage company default on their payments. A sample of five customers is selected. What is the probability that exactly two customers in the sample will default on their payments?

• A)0.2592
• B)0.0142
• C)0.9588
• D)0.7408

Comprehend efficiency and effectiveness concepts in the context of business process management.

Recognize different strategies for gaining competitive advantage in the marketplace.

Understand the impact of technology in enhancing customer experience and operational processes.

Recognize the role of continuous improvement mechanisms such as BPI, BPM, and BPR in business process optimization.

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Definitions:

FMV

Fair Market Value, the price that property or an asset would sell for on the open market under current conditions.

Basis

The original value or cost of an asset for tax purposes, used to determine capital gains or losses.

FMV

Stands for Fair Market Value, which is the price an asset would sell for on the open market, where both buyer and seller have reasonable knowledge of the asset and are willing to trade without pressure.

Basis

The amount of an investment in property for tax purposes; the starting point for determining gain or loss.