SOLUTION: Historical data collected at American Nationwide Mortgage revealed that 80% of all customers applying for a loan are accepted. Suppose that 50 new loan applications are selected at

Algebra ->  Probability-and-statistics -> SOLUTION: Historical data collected at American Nationwide Mortgage revealed that 80% of all customers applying for a loan are accepted. Suppose that 50 new loan applications are selected at      Log On


   

Question 62746: Historical data collected at American Nationwide Mortgage revealed that 80% of all customers applying for a loan are accepted. Suppose that 50 new loan applications are selected at random.
a) What is the probability that at least 42 loan applications will be accepted?
b) What is the probability that more than 40 loan applications will be accepted?
c) What is the probability that less than 25 loan applications will be accepted?
d) What is the probability that less than 5 loan applications will be rejected?
e) What is the probability that more than 30 loan applications will be accepted?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Historical data collected at American Nationwide Mortgage revealed that 80% of all customers applying for a loan are accepted. Suppose that 50 new loan applications are selected at random.
------------
These are all binomial with n=50, p=0.8
a) What is the probability that at least 42 loan applications will be accepted?
P(X>=42)=0.3073...
b) What is the probability that more than 40 loan applications will be accepted?
P(X>40)=0.4437...
c) What is the probability that less than 25 loan applications will be accepted?
0.0000004924...
d) What is the probability that less than 5 loan applications will be rejected?
6.78X10^-28
e) What is the probability that more than 30 loan applications will be
accepted?
0.99967...
Comment: Got these answers using the function binomcdf on a TI-83 calculator.
Cheers,
Stan H.