Based on Past Experience,a Bank Believes That 9% of the People

question 31

Multiple Choice

Based on past experience,a bank believes that 9% of the people who receive loans will not make payments on time.The bank has recently approved 300 loans.Describe the sampling distribution model of the proportion of clients in this group who may not make timely payments.

• A)Binom(300,9%)
• B)N(9%,0.5%)
• C)N(91%,1.7%)
• D)N(9%,1.7%)
• E)There is not enough information to describe the distribution.

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Definitions:

Economic Growth

Economic growth is an increase in the production of goods and services in an economy over a period of time, typically measured as the rate of increase in real GDP.

Capital Formation

The process of building up the physical and financial assets of an economy for the production of goods and services.

Manufacturing

The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

Services

Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation.