Probability using Binomial distribution.
The Bank of Hawaii reports that 7 percent of its credit card holders will default at some time in their life. The Hilo branch just mailed out 12 new cards today.
a. How lots of of these new cardholders would you expect to default? What is the standard deviation?
b. What is the possibility that none of the cardholders will default?
c. What is the probability at least one will default?