Based on past experience, a bank believes that 4% of the people who receive loans will not make payments on time.The bank has recently approved 300 loans.What is the mean of the proportion of clients in this group who may not make timely payments?
A) $\mu = 4 \%$
B) $\mu = 3.46 \%$
C) $\mu = 1.1 \%$
D) $\mu = 2 \%$
E) $\mu = 12 \%$

Question

Based on past experience, a bank believes that 4% of the people who receive loans will not make payments on time.The bank has recently approved 300 loans.What is the mean of the proportion of clients in this group who may not make timely payments? 
A) $\mu = 4 \%$
B) $\mu = 3.46 \%$
C) $\mu = 1.1 \%$
D) $\mu = 2 \%$
E) $\mu = 12 \%$

Quizplus · Accepted Answer

The mean of the proportion of clients who may not make timely payments is the expected rate of not making payments on time, which is 4%.

Based on Past Experience, a Bank Believes That 4% of the People