Question 1161213
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If 10% of all loans are in default, 90% of all loans are not in default.


If 20% of all loans in default are mortgages, then 80% of all loans in default are not mortgages.


So:


0.10 X 0.20 = 0.02 or 2% of all loans are Mortgages in Default.


0.10 X 0.80 = 0.08 or 8% of all loans are Non-Mortgages in Default.


0.90 X 0.70 = 0.63 or 63% of all loans are Mortgages Not in Default.


0.90 X 0.30 = 0.27 or 27% of all loans are Non-Mortgages Not in Default.


A. 2%


B. 10% + 63% = 73%


C.



*[tex \LARGE \ \ \ \ \ \ \ \ \ \ P\(k>25,100,0.65\)\ =\ \sum_{r=26}^{100}\,{{100}\choose{r}}\,(0.65)^r\,(0.35)^{100-r}]


Which is so close to 1.0 (the first 15 digits in the decimal representation are 9s) that you can consider this to be a sure thing.

								
								
John
*[tex \LARGE e^{i\pi}\ +\ 1\ =\ 0]
My calculator said it, I believe it, that settles it
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*[tex \LARGE \ \ \ \ \ \ \ \ \ \  
								
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