A large lending institution issues both adjustable-rate and fixed-rate mortgage loans on residential property, which it classifies into three categories: single-family houses, condominiums, and multi-family dwellings. The following table displays probabilities based on the bank’s long-run lending behavior: Mortgage Choices Single-Family Condo Multi-Family Adjustable-Rate _____ ? .21 .09 Fixed-Rate .1 .09 .11
What is the probability that a randomly selected customer will have a loan with an adjustable-rate or for a multi-family dwelling? Round your answer to 2 decimal places.
| Mortgage Choices | Single-Family | Condo | Multi-Family | Total |
| Adjustable-Rate | 0.40 | 0.21 | 0.09 | 0.70 |
| Fixed-Rate | 0.10 | 0.09 | 0.11 | 0.30 |
| Total | 0.50 | 0.30 | 0.20 | 1 |
Probability that a randomly selected customer will have a loan with an adjustable-rate or for a multi-family dwelling
= P(Adjustable-Rate or Multi-Family)
= P(Adjustable-Rate) + P(Multi-Family) - P(Adjustable-Rate and Multi-Family)
= 0.70 + 0.20 - 0.09
= 0.81
A large lending institution issues both adjustable-rate and fixed-rate mortgage loans on residential property, which it...
A bank offers both adjustable and fixed rate mortgage loans on residential properties, which are classified into three categories: single-family homes, condominiums, and multi-family homes. Each loan made in 2010 was classified according to type of mortgage and type of property, as shown in the given table. Single Family Condo Multi Family Adjustable 1500 788 337 Fixed Rate 375 377 373 Answer the following: (Express answers as fractions or to 4 decimal places) a) What is the probability that a...