Question 1
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?
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0.2592
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0.0142
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0.9588
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0.7408
Question 2
If you are conducting an experiment where the probability of a success is 0.2 per day and you are interested in finding the probability of 4 successes in in three days, the correct probability function to use is
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the standard normal probability density function
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the normal probability density function
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the Poisson probability function
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any probability as long as the tables are available