According to the Mortgage Bankers Association, 11% of U.S. mortgages were delinquent last year. A delinquent mortgage is one that has missed at least one payment but has not yet gone to foreclosure. A random sample of eight mortgages was selected. What is the standard deviation of this distribution?

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Quizplus · Accepted Answer

The standard deviation of a binomial distribution is calculated using the formula √(n * p * (1-p)), where n is the number of trials (8), and p is the probability of success (0.11). Plugging in these values gives √(8 * 0.11 * 0.89) ≈ 0.766.