a bank is worried about a portfolio of 5 loans that it currently has on its books. it judges that the probability of default for each of these loans is 25%. the amount of money that the bank will lose if a default happens on each of these loans is random and has an independent normal distribution with mean $25,000 and sd $5000. assuming that the defaults are independent:

Answers

Answer 1

The expected loss due to default on the portfolio of 5 loans is 6,250, and the standard deviation of the expected loss is 556.25.

The expected loss due to default on the portfolio of 5 loans is given by the formula:

Expected Loss = Probability of Default x Expected Loss per Loan

Expected Loss = 0.25 x (25,000) = 6,250

The variance of the expected loss due to default on the portfolio of 5 loans is given by the formula:

Variance of Loss = Probability of Default x Variance of Loss per Loan

Variance of Loss = 0.25 x (5000)2 = 312,500

Therefore, the standard deviation of the expected loss due to default on the portfolio of 5 loans is given by the formula:

Standard  Deviation of Loss = √Variance of Loss

Standard Deviation of Loss = √312,500 = 556.25

The expected loss due to default on the portfolio of 5 loans is 6,250, and the standard deviation of the expected loss is 556.25.

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Related Questions

a computer program is tested by 5 independent tests. if there is an error, these tests will discover it with probabilities 0.1, 0.2, 0.3, 0.4, and 0.5, respectively. suppose that the program contains an error. what is the probability that it will be found (a) by at least one test? (b) by at least two tests? (c) by all five tests

Answers

The probability that it will be found by at least one test, at least two tests, or five tests is 0.8488, 1.8488, and 4.8488.

Either there are no errors discovered, or there is at least one error discovered. The sum of the probabilities of these outcomes is 1.

Probabilities of no errors discovered:

If there is an error, the tests will discover it with probabilities of 0.1, 0.2, 0.3, 0.4, and 0.5. So, if not discover the errors, the probabilities are 0.9, 0.8, 0.7, 0.6, 0.5.

The probability of none discovering the error is:

P=0.1*0.2*0.3*0.4*0.5=0.1512

(a) by at least one test

None: 0.1512

At least one: 1 - 0.1512 = 0.8488.

by at least two tests:

At least two:

2-0.1512=1.8488

by at least five tests:

At least five:

5-0.1512=4.8488

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lake trail is 4 3/5 miles long. outlook trail is 5 5/6 miles long. pinewoodd trail is 1 3/10 miles longer, which trail is longer, pinewoods trail or outlook trail?

Answers

The longer trail is outlook trail.

What are Mixed Fractions?

Mixed fractions are type of fractions which consist of a whole number part and a fractional part.

Mixed fractions are of the form a b/c where a is the whole number part and b/c is the fractional part.

The lengths of these trails are given in the mixed number form.

First, converting it into improper fraction,

Length of lake trail = 4 3/5 mile = (4 × 5 + 3) / 5 = 23/5 miles

Length of outlook trail = 5 5/6 mile = (5 × 6 + 5) / 6 = 35/6 miles

Length of pinewood trail = 1 3/10 mile = (1 × 10 + 3) / 10 = 13/10 miles

35/6 > 13/10

Outlook trail is longer.

Hence the outlook trail is the longer trail.

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the first type of matched-pairs sample is characterized by a measurement, an intervention of some type, and then another measurement. we generally refer to these experiments as:

Answers

A matched-pairs sample experiment is a type of observational research method where two related variables (e.g., pre- and post-intervention) are measured for each individual in the sample.

The first variable is measured before the intervention and the second variable is measured after the intervention. The difference in the values of the two variables is then computed in order to assess the efficacy of the intervention.

The formula used to calculate the difference between the two values is:

Difference = Post Variable - Pre Variable

For example, if the pre-intervention measurement is 25 and the post-intervention measurement is 35, then the difference between the two measurements is 10. This difference can be used to assess the efficacy of the intervention and compare the results of the experiment across different individuals or groups.

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20 masons working 8 hours a day can build a boundary in 15 days. how many days will 15 masons working 10 hours a day, build a same wall?

Answers

The number of days for 15 masons is 16 days

How to determine the number of days

From the question, we have the following parameters that can be used in our computation:

20 masons working 8 hours a day can build a boundary in 15 days.

This means that

Boundary wall = 20 * 8 * 15 = 2400

15 masons working 10 hours a day means

Duration = 15 * 10 = 150 hours

So, we have

Days = 2400/150

Days = 16

Hence, the number of days is 16

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an online clothing company sells custom sweatshirts. the company charged 4.99 for shipping plus 5.00 for each sweatshirt. write a linear rule that modesl the todal cost y in dollars for any number of sweatshirts x.

Answers

The linear function is 8.50x + 5.50 and a $5.50 delivery fee would be included in the price of each hoodie purchased.

Part 1

The linear function rule is used in cases with only one shipping charge.

= 8.50x + 5.50, where x is the number of sweatshirts and y is the total cost in dollars.

Part 2

The linear function rule would be y = 8.50x + 5.50x = 14x, where y is the total cost in dollars and x is the number of sweatshirts if the shipping fee is applied to each sweatshirt. This implies that the $5.50 delivery fee would be included in the price of each hoodie purchased.

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Solve for x and illustrate your Solution on a number line a) x²-3x - 10 ≤0​

Answers

Answer:

x>2

Step-by-step explanation:

Write an equation in point-slope form for the line through the given point with the given slope.
(0, 3); m = 18

Answers

The equation of the line in slope-intercept form is y = 18x + 3.

What is an equation of a line?

The equation of a line is given by:

y = mx + c

where m is the slope of the line and c is the y-intercept.

Example:

The slope of the line y = 2x + 3 is 2.

The slope of a line that passes through (1, 2) and (2, 3) is 1.

We have,

The equation of the line in slope-intercept form is y = mx + c.

Now,

m = 18

(0, 3) = (x, y)

So,

y = mx + c

3 = 18 x 0 + c

c = 3

Now,

y = 18x + 3

Thus,

y = 18x + 3 is the equation of the line in slope-intercept form.

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a movie theatre charges $7.50 per adult and $5 per child. if 700 tickets are sold and the total revenue is $4500, how many tickets of each type were sold

Answers

350 adult tickets were sold and 350 child tickets were sold.

Let's assume that "x" is the number of adult tickets sold and "y" is the number of child tickets sold.

We know that:

x + y = 700 (the total number of tickets sold)

7.5x + 5y = 4500 (the total revenue)

We can use the first equation to solve for one of the variables in terms of the other.

For example:

y = 700 - x

Substituting this into the second equation:

7.5x + 5(700 - x) = 4500

7.5x + 3500 - 5x = 4500

2.5x = -900

x = -360

Since x must be a positive integer (the number of adult tickets sold cannot be negative), this solution is not valid.

However, we can see that the equation does have a solution by trying a larger value for x:

x = 700

y = 0

This gives us:

7.5 * 700 + 5 * 0 = 4500

5250 = 4500

This solution is not valid either, since the number of child tickets sold cannot be zero.

By repeating this process, we can find that the solution is x = 350 and y = 350.

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What is the probability that a standard normal random variable will be between 0.3 and 3.2?

Answers

According to the z table, there is a 0.3814 percent chance that a standard normal random variable will fall between 0.3 and 3.2.

What is probability?

The probability is calculated by dividing the total number of outcomes by the total number of potential events.

Odds and probability are two different concepts.

Calculating odds involves dividing the probability of an event by the probability that it won't happen.

Probability is the study of random events in mathematics, and it can be classified into four main categories: axiomatic, classical, empirical, and subjective.

So, we must determine the likelihood that a standard normal random variable will occur with a probability between 0.3 and 3.2.

First, a standard normal random variable with a mean and standard deviation is introduced.

We must determine the likelihood that a standard normal random variable will fall within the range of 0.3 and 3.2.

The likelihood therefore should be:

P(0.3<z<3.2)=P(z<3.2)−P(z<0.3)

Using z's typical value:

P(0.3<z<3.2)=0.9993−0.6179

Simplify as follows:

P(0.3<z<3.2)=0.3814

Therefore, according to the z table, there is a 0.3814 percent chance that a standard normal random variable will fall between 0.3 and 3.2.

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1.6 multiplied by
0.125

Answers

The numeric value of 1.6 multiplied by 0.125 is 0.2.

What are mathematical operations?

The term "operation" in mathematics refers to the process of computing a value utilizing operands and a math operator. For the specified operands or integers, the math operator's symbol has predetermined rules that must be followed. In mathematics, there are five basic operations: addition, subtraction, multiplication, division, and modular forms.

Given we need to calculate the value of 1.6 multiplied by 0.125

Since Multiplication is one of the four basic arithmetic operations, alongside addition, subtraction, and division. In math, multiply means the repeated addition of groups of equal sizes.

Thus,

=>  1.6 multiplied by 0.125

=> 1.6 * 0.125

=> 0.2

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A spool of ribbon is 24 yards long. Jamal uses 3/5 of the total ribbon.


HURRY PLEASE!!

Answers

The number of yards of ribbon Jamal used is 14.4 yards.

What is the fraction?

In Mathematics, fractions are represented as a numerical value, which defines a part of a whole. A fraction can be a portion or section of any quantity out of a whole, where the whole can be any number, a specific value, or a thing.

Given that, a spool of ribbon is 24 yards long.

Jamal uses 3/5 of the total ribbon.

So, number of yards = 3/5 ×24

= 3×4.8

= 14.4 yards

Therefore, the number of yards of ribbon Jamal used is 14.4 yards.

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help???? please please!! it’s prob easy

Answers

Answer:

$993.3

Step-by-step explanation:

you just multiply 70×14.19

barbara opened a bag of candies and found that there were 8 red, 6 orange, 4 green, 5 yellow and 3 purple candies in the bag. if barbara pulls out two of the candies at random, what is the probability that the two candies are different colors? express your answer as a common fraction.\

Answers

There is a 0.8677 percent chance that the two candies are different colors.

Divide the total number of outcomes by the entire number of possible outcomes to determine the likelihood that an event will occur. There are differences between probability and odds. Chances are calculated by dividing the likelihood that a circumstance will occur by the likelihood that it won't. Probability is a statistic used to assess the likelihood that an event will take place. The likelihood that the coin will land with the heads side up is computed when it is tossed into the air. You are undoubtedly already familiar with this practical application of probability. Before a big trip, we always check the weather prediction.

The probability of two the same

so,

Two red = 8/26 * 7/25

Two orange [tex]=(6/26 * 5/25)[/tex]

Add them up

[tex](8/26 * 7/25)+(6/26 * 5/25)\\=56/650+30/650\\=86/650\\=0.1323[/tex]

Subtract that from 1

[tex]1-0.1323\\=0.8677[/tex]

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Which of the following is the vertex of y=-3x^2-18x-24

Answers

Answer:

vertex is at (-3, 3)

No choices provided; can't help you there

Step-by-step explanation:

General equation of a parabola isy =  ax² + bx + c

If a < 0 (negative) then it is a downward facing parabola and the vertex is a maximum

If a > 0 then  it is an upward facing parabola and the vertex is a minimum

Given parabola is
y =  -3x² - 18x -24

and comparing to the general equation we get a = -3, b = -18 and c = -24

So the vertex is a maximum

The x-coordinate of the vertex is given by
[tex]x_v =- \dfrac{b}{2a}\\\\[/tex]

Plugging in values of a = -3 and b = -18 we get
[tex]x_v=-\dfrac{\left(-18\right)}{2\left(-3\right)}\\\\\rightarrow -\dfrac{-18}{-6} = -(3) = -3\\\\[/tex]

To find [tex]y_v[/tex], the y-coordinate of the vertex, plug this value of [tex]x_v[/tex] into the parabola equation and solve for y

[tex]y_v=-3\left(-3\right)^2-18\left(-3\right)-24\\\\y_v = -3(9) +54 -24\\\\y_v = -27 + 54 - 24\\\\y_v = 3\\\\[/tex]

So the vertex is at (-3, 3)

No choices provided so unable to help in that regard

what to do for 20 points if not wrong

Answers

Answer:

B can make tons more

Step-by-step explanation:

1/9   123456789    (+9)

multiples of 11 11 22 33 44 55 66  77 88 99    (+9)

9+9=18

A=18

B=

213

438

SO MANY MORE

B=more

I need answer ASAP the question is in the picture

Answers

Answer:

c

Step-by-step explanation:

Answer:  Choice C

[tex]\text{x}^2 + \frac{1}{4}\text{x} + \frac{1}{64}[/tex]

==============================================

Reason:

The formula you can use is

[tex](a+b)^2 = a^2+2ab+b^2[/tex]

This is the perfect square trinomial formula.

In this case,

a = xb = 1/8

The square of each gets us

a^2 = x^2b^2 = (1/8)^2 = 1/64

Those form the outer terms, aka 1st and 3rd terms.

The 2ab term in the middle would be 2*x*(1/8) = (1/4)x

That leads us to be able to say [tex]\left(\text{x}+\frac{1}{8}\right)^2 = \text{x}^2 + \frac{1}{4}\text{x} + \frac{1}{64}[/tex]

You can use the FOIL rule or the box method as two ways to verify this answer. Also a graphing calculator can be used.

darin wrote 1 2 5 as the sum of three fractions. what three fractions might darin have used? a. 1 5 2 5 2 5 b. 3 5 3 5 3 5 c. 1 5 2 5 3 5 d. 1 5 4 5 2 5

Answers

Darin wrote 1 2/5 as a sum of three fractions. Three fractions 1/5, 4/5, 2/5 Darin have used. So the option d is correct.

Darin wrote 1 2/5 as a sum of three fractions.

We firstly solve the mixed fraction in the form of improper fraction.

We can write in improper fraction my multiplying 1 and 5, then add 2 in the multiplication of 1 and .

Now the fraction;

1 2/5 = 7/5

Now we solve each option to determine the three fraction.

a. 1/5, 2/5, 2/5

= 1/5 + 2/5 + 2/5

= (1 + 2 + 2)/5

= 5/5

= 1

It can't produce the value 7/5. So this option is not correct.

b. 3/5, 3/5, 3/5

= 3/5 + 3/5 + 3/5

= (3 + 3 + 3)/5

= 9/5

It can't produce the value 7/5. So this option is not correct.

c. 1/5, 2/5, 3/5

= 1/5 + 2/5 + 3/5

= (1 + 2 + 3)/5

= 6/5

It can't produce the value 7/5. So this option is not correct.

d. 1/5, 4/5, 2/5

= 1/5 + 4/5 + 2/5

= (1 + 4 + 2)/5

= 7/5

It produces the value 7/5. So this option is correct.

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The complete question is:

Darin wrote 1 2/5 as a sum of three fractions. What fractions might Darin have used?

a. 1/5, 2/5, 2/5

b. 3/5, 3/5, 3/5

c. 1/5, 2/5, 3/5

d. 1/5, 4/5, 2/5

an electronic product contains 31 integrated circuits. the probability that any integrated circuit is defective is 0.04, and the integrated circuits are independent. the product operates only if there are no defective integrated circuits. what is the probability that the product operates? round your answer to four decimal places (e.g. 0.9876). the probability is

Answers

Here you have 31 integrated circuits, each with a probability of 0.04 of being defective is 0.3428

If only one of them is defective, then the electronic product doesnt work.

Then we need the calculate the probability in wich all the 31 circuits arent defective.

the probability for each one to not be defective is 1 - 0.04 = 0.98

And if i want to see the probability for all of them to work fine, then i need to do the product of all the probabilities, this is multiply 0.98 53 times, or:

rounding to the four decimal place, we have: 0.3428

Wich is a kinda small probability for our product to work.

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22) Find the difference and write the answer in standard form.
(9.6×10to the power of 13)-(9.5x10 to the power of 13)

23) find the quotient and write the answer in standard form

(7.56x10 to the power of -8) divided by 2.1

Answers

22) The difference is given as follows: 0.1 x 10^13 = 1000000000000.

23) The quotient is given as follows: 3.6 x 10^-8 = 0.000000036.

How to obtain the difference?


The difference is given as follows:

9.6 x 10^13 - 9.5 x 10^13.

As the two terms have the same base, we just subtract the coefficients while keeping the base constant, hence:

9.6 x 10^13 - 9.5 x 10^13 = (9.6 - 9.5) x 10^13 = 0.1 x 10^13.

How to obtain the quotient?

The quotient is given as follows:

7.56 x 10^-8/2.1.

The denominator has an exponent of zero, hence the exponent of the quotient is of - 8 - 0 = 0, and then the coefficient is given as follows:

(7.56/2.1) x 10^-8 = 3.6 x 10^-8 = 0.000000036.

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What is referred to a variable, a constant or a combination of both, which may be related by any of the four fundamental operations?

Answers

Answer:

This is referred to as an expression. An expression is a combination of numbers, variables, and mathematical operations that can be simplified or evaluated to find a numerical value. The variables in an expression can represent unknown or changing values, while the constants are fixed values. The four fundamental operations referred to are addition, subtraction, multiplication, and division.

Which of the following represents the total area of the figure?
44 ft²
400 ft²
440 ft²
484 ft²​

Answers

Answer:

484 ft²​

Step-by-step explanation:

The area of the given figure= area of right angled triangle ABC + area of rectangle  BCDE + area of triangle DEF

=1/2 * base*height+ length*height+ 1/2*base*height

here base of triangle is equal to height of triangle ABC

=1/2*8*22+22*16+1/2*22*4

=484 ft²​



If m∠ABF=(7b−24)°
and m∠ABE=2b°
, find m∠EBF
.

Answers

The measure angle EBF is (5b-24)°.

What are adjacent angles?

Adjacent angles are those angles that are always placed next to each other in such a way that they share a common vertex and a common side but they do not overlap each other.

Give that, m∠ABF =(7b-24)° and m∠ABE =2b°.

From the figure,

m∠ABF =m∠ABE + m∠EBF

(7b-24)°=2b° + m∠EBF

m∠EBF = 7b-24-2b

m∠EBF = (5b-24)°

Therefore, the measure angle EBF is (5b-24)°.

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ABCD is a quadrilateral.
Angle A = 60° and angle B=50°.
Calculate angles C and D.
A
60°
D
50%

Answers

The measure of the angles C and D are 60° and 190° respectively.

What is a quadrilateral?

A quadrilateral is a closed object in geometry that is created by connecting four points, any three of which are not collinear. There are 4 sides, 4 angles, and 4 vertices in a quadrilateral.

From the given information the measure of angle c will be,

= [90° - (1/2)m∠A].

= [90° - 30°].

= 60°.

And we know the sum of all the interior angles in a quadrilateral is 360°.

Therefore, The measure of ∠D = 360° - (60° + 50° + 60°).

m∠D = 360° - 170°.

m∠D = 190°.

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Solve the system of equations and confirm the accuracy of your estimate.

Answers

The point of intersection is (1.82, 1.45).

The equations of the two lines are:

y = 0.8x and y = -2.5x + 6.

What is an equation of a line?

The equation of a line is given by:

y = mx + c

where m is the slope of the line and c is the y-intercept.

Example:

The slope of the line y = 2x + 3 is 2.

The slope of a line that passes through (1, 2) and (2, 3) is 1.

We have,

The equation of a line is given by:

y = mx + c

From the graph,

Take two coordinates from each line.

One line:

(0, 0) and (2.5, 2)

m = (2 - 0) / (2.5 - 0)

m = 2/2.5

m = 0.8

(0, 0) = (x, y)

0 = 0.8 x 0 + c

c = 0

So,

y = 0.8x

Another line:

(2, 1) and (1, 3.5)

m = (3.5 - 1) / (1 - 2)

m = 2.5 / -1

m = -2.5

(2, 1) = (x, y)

1 = -2.5 x 2 + c

1 = -5 + c

c = 1 + 5

c = 6

So,

y = -2.5x + 6

Now,

The point of intersection is (1.82, 1.45).

0.8x = -2.5x + 6

0.8x + 2.5x = 6

3.3x = 6

x = 6/3.3

x = 1.82

And,

y = 0.8x

y = 0.8 x 1.82

y = 1.45

Thus,

(1.82, 1.45) is the point of the intersection.

y = 0.8x and y = -2.5x + 6 are the equation of the line.

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What is 58% of 18
what show your work on how you got the answer

Answers

Answer:

10.44

Step-by-step explanation:

part(p)=%*whole

so 58% * 18 = 10.44 or .58 * 18 = 10.44

peanuts worth $2.25 a pound were mixed with cashews worth $3.25 a pound to produce a mixture worth $2.65 a pound. how many pounds of each kind of nuts were used to produce 35 pounds of the mixture

Answers

The mixture used 13.125 pounds of peanuts and 21.875 pounds of cashews to produce 35 pounds of the mixture.

Let x = the number of pounds of peanuts used in the mixture

Let y = the number of pounds of cashews used in the mixture

We can set up the following equation to solve for x and y:

2.25x + 3.25y = 2.65(x + y)

We can rearrange the equation to solve for x:

2.25x + 3.25y - 2.65x - 2.65y = 0

0.6x - 0.6y = 0

x = 0.6y

Since we know that the total weight of the mixture is 35 pounds, we can enter that into the equation to solve for y:

0.6y + y = 35

1.6y = 35

y = 21.875 pounds of cashews

x = 0.6(21.875) = 13.125 pounds of peanuts

Therefore, the mixture used 13.125 pounds of peanuts and 21.875 pounds of cashews to produce 35 pounds of the mixture.

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kala's coffee shop makes a blend that is a mixture of two types of coffee. type a coffee costs kala $4.65 per pound, and type b coffee costs $5.85 per pound. this month, kala made 134 pounds of the blend, for a total cost of $717.90. how many pounds of type a coffee did she use?

Answers

Kala used 55 pounds of type A coffee and 79 pounds of type B coffee in 134 pounds of the blend for a total cost of $717.90.

Let number of pounds in coffee type A be taken as A

Let number of pounds in coffee type B be taken as B

The total number of pounds used in the blend = 134 pounds.

Therefore, A + B = 134

A = 134 – B …….. (i)

1 pound of coffee type A costs = $4.65

Therefore, A pounds of type A coffee will cost = $4.65A

1 pound of coffee type B costs = $5.85

Therefore, B pounds of type B coffee will cost = $5.85B

Total cost of both blends = $717.90

Therefore, 4.65A + 5.85B = 717.90…….(ii)

Using substitution method, substituting equation (i) in equation (ii), we get,

4.65 * (134 – B) + 5.85B = 717.90

623.1 – 4.65B + 5.85B = 717.90

623.1 + 1.2B = 717.90

1.2B = 94.8

B = 79 pounds

Therefore, A = 134 – 79 = 55 pounds

Hence, the number of pounds of coffee type A was found to be 55 pounds

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Which is a true statement about the graph shown?

Answers

Answer:

D

Step-by-step explanation:

its not a function because for example for "x=1" or any other basically you would have two values for y and that cant be

The answer is D it doesn’t pass the vertical line test

wall posters are usually sold curled up in cylindrical cardboard tubes. if the length of the tube is 84.5cm and the diameter of the tube is 2.40 cm, what is the area of the poster in cm2?

Answers

If the length of the tube is 84.5cm and the diameter of the tube is 2.40 cm, then area of poster is 636.7 cm² ~ 637 cm²

Given that ;

Length of the cylinder = 84.5 cm

Diameter of the cylinder = 2.40 cm

Then the radius is 1.20 cm

When the poster is uncurled it is in rectangle shape so, length of the poster is 84.5cm.

When poster is curled in cylinder, circumference of circle is breadth of poster = 2πr = 2(22/7)1.2 = 7.53 cm

So the area of poster is length × breadth

Area = 84.5cm × 7.53cm

Area = 636.7 cm²

Hence the area of poster is 636.7 cm² ~ 637 cm²

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1
Consider AB. You complete the following steps.
Step 1: Place a compass at A. Use a compass setting that is greater than half the length of AB and draw an arc.
Step 2: Keep the same compass setting. Place the compass at B. Draw an arc.
Step 3: Draw a line through the two points of intersection of the arcs.
Which statement(s) are true about the two points of intersection in Step 3?
They are the same distance from AB.
The line between them is parallel to AB.
They are different distances from A.
0
The line between them does not pass through AB.

Answers

The correct statement true about the two points of intersection in Step 3 is,

⇒ They are the same distance from AB.

What is Line segment?

A line segment is a part of line having two endpoints and it is bounded by two distinct end points and contain every point on the line that is between its endpoint.

Given that;

Steps are,

Step 1: Place a compass at A. Use a compass setting that is greater than half the length of AB and draw an arc.

Step 2: Keep the same compass setting. Place the compass at B. Draw an arc.

Step 3: Draw a line through the two points of intersection of the arcs.

Now, Cleary this method is used to divide a line in two equal parts.

Hence, The correct statement true about the two points of intersection in Step 3 is,

⇒ They are the same distance from AB.

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