Probability

4) At the Bank of California, past data show that 8% of all credit card holders default at some time in their lives. On one recent day, this bank issued 12 credit cards to new customers. Find the probability that of these 12 customers, eventually (a) Exactly 3 will default (1 mark) (b) Exactly 1 will default (1 mark) (c) None will default (1 mark) (d) Not more than 2 (2 marks) (e) Less than 3 (2 marks) (f) Find mean and standard deviation. (4 marks) 5) According to a study families of MSU college students spend an average of RM1250.00 on new apparels, accommodation, foods and electronics items. Suppose that the expenses for current year follow approximately normal distribution with a mean of RM1250 and a standard deviation of RM430. (a) Find the probability of amount spent on such items by a randomly selected family of a college student is: i. less than RM580 (3 marks) ii. between RM800 and RM1450 (4 marks) (b) How much would the family of a college student have to spend if the value under the normal curve equal to 0.8289