Question

Question 13 1 pts Four percent of the customers of a mortgage company default on their payments. A sample of four customers is selected. What is the probability that exactly two customers in the sample will default on their payments? 0 0.0142 0 0.0088 0 0.2572 0 0.7458

Answer 1

13)

Solution

Given that ,

Using binomial probability formula ,

P(X = x) = (_n C _x) * p^x * (1 - p)^{n - x}

P(X = 2) = (₄ C ₂) * 0.04² * (0.96)²

Probability = 0.0088