Question:

Records over the past year show that 1 out of 355 loans made

Last updated: 7/7/2022

Records over the past year show that 1 out of 355 loans made

Records over the past year show that 1 out of 355 loans made by Mammon Bank have defaulted. Find the probability that 5 or more out of 320 loans will default. Hint: Is it appropriate to use the Poisson approximation to the binomial distribution? (Round λ to 1 decimal place. Use 4 decimal places for your answer.)