Loan applicants, whose credit score is less than 600, default on a loan, either in a minor or major way, about 10% of the time in a certain regional market. A random sample of 8 applicants in this market with credit scores less than 600 is taken.
(a) What is the probability that the majority will default in some way? Interpret.
(b) What is the probability of no default?
(c) What is the probability of no more than 3 defaults?
(d) What is the probability of at least 3 defaults?
(e) What is the mean, median, mode, and standard deviation of this distribution? What are the implications of these numbers?