The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 1%. The bank will make 1100 loans that are under $10,000 next month. Answer the following. (If...

Extracted text: The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 1%. The bank will make 1100 loans that are under $10,000 next month. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p is the proportion of defaults on the 1100 loans under $10,000 to be made next month. (b) Find the standard deviation of p. (c) Compute an approximation for P p <0.02), which="" is="" the="" probability="" that="" 2%="" or="" fewer="" of="" next="" month's="" loans="" under="" $10,000="" will="" be="" defaulted="" on.="" round="" your="" answer="" to="" four="" decimal="">