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Assignment:
A bank has had to repossess 100 homes. Fifty of these repossessed homes are expected to have market values that are less than the outstanding balance on the mortgage. An auditor randomly selects 10 different repossessed homes and records the number of homes which have market values less than the outstanding balance of the mortgage. What is the probability that all of the audited homes will have a market value less than the outstanding balance of the mortgage?
(Source: Unknown - 325HM?)
1) State the business problem in plain English
2) State the equivalent statistical problem that addresses the stated business problem
3) Identify and list all the necessary variables needed to address the stated statistical problem
4) List all the data available to address the statistical problem
5) Present the Minitab results
6) State the statistical conclusions (drawn from the Minitab analysis)
7) State your business conclusions/recommendations in a short paragraph or memo in plain English.
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