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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