According to the Mortgage Bankers Association,8% of U

question 101

Multiple Choice

According to the Mortgage Bankers Association,8% of U.S.mortgages were delinquent in 2011.A delinquent mortgage is one that has missed at least one payment but has not yet gone to foreclosure.A random sample of eight mortgages was selected.What is the probability that exactly one of these mortgages is delinquent?

• A) 0.1296
• B) 0.3570
• C) 0.4926
• D) 0.6157

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Definitions:

Share Draft Account

A type of checking account in credit unions that allows the account holder to access funds through checks (drafts) or electronic means.

Checking Account

Money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called a demand deposit.