Homework SourseThe Middlecreek Branch of the National Bank of Virginia has
The Middlecreek Branch of the National Bank of Virginia has 8 real estate loans over $1,000,000. Of these 8 loans, 3 are \"underwater.\" A loan is underwater if the amount of the loan is greater than the value of the property. The chief loan officer decided to randomly select four of these loans to determine if they met all banking standards.
a. What is the probability that none of the selected loans is underwater?
b. What is the probability that 2 or more of the selected loans is underwater?
Solution
![The Middlecreek Branch of the National Bank of Virginia has 8 real estate loans over $1,000,000. Of these 8 loans, 3 are \](/WebImages/19/the-middlecreek-branch-of-the-national-bank-of-virginia-has-1040101-1761540142-0.webp "The Middlecreek Branch of the National Bank of Virginia has 8 real estate loans over $1,000,000. Of these 8 loans, 3 are \")
