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The probability of a customer arriving in a bank per minute is 0.9. How many customers will arrive in 10 minutes?
Thanks
Ashish
Thanks
Ashish
The likelihood of a bank customer defaulting on their loan depends on various factors such as their credit score, income, and past financial history. It is impossible to give a definite answer without knowing these individual factors.
Banks use complex mathematical models to estimate the probability of a customer defaulting. These models take into account various factors such as credit score, income, and past financial history.
While banks use advanced models to calculate the probability of default, it is impossible to accurately predict the behavior of individual customers. These models can only provide an estimate based on historical data and trends.
The probability of a customer defaulting is one of the key factors that banks consider when making lending decisions. A higher probability of default may result in the bank offering a higher interest rate or rejecting the loan application altogether.
Banks can manage their risk by diversifying their loan portfolio, setting stricter lending criteria, and closely monitoring the financial health of their customers. They may also require collateral or a co-signer for loans with a high probability of default.