A bank found 25% of its loans If 20 small businesses are randomly selected from the bank’s files, what is the probability that three of them are delinquent?

Answer 1

Binomialpdf(20,.25,3) = 0.1339.

n=20

x=3

p= 0.25.

Combination(20,3) * (.25^3) *(1-.25)^(20-3) = .1339.