Question 210083
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 
what is the likelyhood that none of the card holders will default
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Both problems are binomial because either a customer defaults or he doesn't.
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P(no defaults) = 12C0(0.07)^0*(0.93)^12 = 0.93^12 = 0.4186
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what is the likelyhood that at least one will default
P(at least one default) = 1 - P(no defaults) = 1-0.4186 = 0.5814
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Cheers,
Stan H.