I am stumped on the following problem and could use some help quickly. Please provide guidance on how to solve the problem.
1) The probability of default on a certain type of commercial loan is 0.10. If a bank makes 100 of these loans, what is the probability that at least 16 will default?
A) between .05 and .025.
B) between .10 and .05
C) greater than .10
D) less than .001.
The solution provides step by step method for the calculation of test statistic for t test. Formula for the calculation and Interpretations of the results are also included.