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    The Stripes C-Store Chain

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    The Stripes C-store chain reports that 7% of its credit card holders will default within 5 years. It just mailed out 12 new cards today.
    a.How many of these new cardholders would be expected to default within 5 years? What is the standard deviation?
    b.What is the likelihood that none of these cardholders will default?
    c.What is the likelihood that at least one will default?

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    https://brainmass.com/statistics/probability/stripes-c-store-chain-177495

    Solution Preview

    The Stripes C-store chain reports that 7 % of its credit card holders will default within 5 years. It just mailed out 12 new cards today.

    p = 7%
    n = 12
    q = 1-p = ...

    $2.19

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