document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=210083>Question 210083</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/9780073401768/algebrahomeworkh></A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> The bank of of Hawaii reported that 7% of its credit card holders will default at some time in their life. the Hilo branch just mailed out 12 new card\r<BR>\n" );
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document.write( "what is the likelywood that none of the card holder will default \r<BR>\n" );
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document.write( "what is the likelyhood that at least one will default </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #158778 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=158778\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The bank of of Hawaii reported that 7% of its credit card holders will default at some time in their life. the Hilo branch just mailed out 12 new card <BR>\n" );
document.write( "what is the likelyhood that none of the card holders will default<BR>\n" );
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document.write( "Both problems are binomial because either a customer defaults or he doesn't.<BR>\n" );
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document.write( "P(no defaults) = 12C0(0.07)^0*(0.93)^12 = 0.93^12 = 0.4186<BR>\n" );
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document.write( "what is the likelyhood that at least one will default<BR>\n" );
document.write( "P(at least one default) = 1 - P(no defaults) = 1-0.4186 = 0.5814<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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