What is the probability that no homeowners out of the 400 will default?

What is the probability that no homeowners out of the 400 will default?

First
National Bank thoroughly investigates its applicants for small
home-improvement loans. Its default record is very impressive: The
probability that a homeowner will default is only .005. The bank has approved
400 small home-improvement 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.)

Probability

(b)

How many of the 400 are expected
not to default?

Expected value

(c)

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

Probability


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