First
National Bank thoroughly investigates its applicants for small
homeimprovement loans. Its default record is very impressive: The
probability that a homeowner will default is only .005. The bank has approved
400 small homeimprovement loans. Assuming the Poisson probability
distribution applies to this problem:
(a)

What is the
probability that no homeowners out of the 400 will default? (Round your answer to 4 decimal places.)

(b)

How many of the 400 are expected
not to default?

(c)

What is the
probability that 3 or more homeowners will default on their small
homeimprovement loans?(Round your answer to 4
decimal places.)

Probability