5· The following accounts. The data are broken down by the eredit card type und

Question

5· The following accounts. The data are broken down by the eredit card type und nuar table shows the nuenber of Bank of America customers the wso have overdue of days overdue. Days Overdue 30 days or less 31 -60 days 61-90 days More than 90 days Card Type las 42 Gold 121 25s 217 15 37 Total- 325 275 600 a. (5 points) Determine the probability that a randomly selected customer has a Standard card (5 points) Determine the probability that a randomly selected customer has a Standard card and is 31-60 days overdue. b. (5 points) Determine the probability that a randomly selected customer has a Standard card or is 30 days or less overdue. c. MTH 2330- Exam 2 Fall 2017

Explanation / Answer

a)

P(customer has a Standard card) = No. of customers who have a Standard Card / Total Customers

P(customer has a Standard card) = 325/600 = 0.542

Ans: Probability that a randomly selected customer has a Standard Card = 0.542

b)

P(customer has a Standard card and is 31-60 days overdue) = No. of customers who have a Standard Card and have 31-60 days overdue / Total Customers

P(customer has a Standard card and is 31-60 days overdue) = 96/600 = 0.16

Ans: Probability that a randomly selected customer has a Standard Card and is 31-60 days overdue = 0.16

c)

P(customer has a Standard card OR is less than 30 days overdue) = No. of customers who have a Standard Card + No. of customers who have less than 30 days overdue - No. of customers has a Standard card AND is less than 30 days overdue / Total Customers

= P(No. of customers who have a Standard Card) + P(customers who have less than 30 days overdue) - P(customer has a Standard card AND is less than 30 days overdue)

= 325 + 255 - 165 / 600

= 415 / 600 = 0.692

Ans: Probability of having a customer who has a Standard card OR is less than 30 days overdue = 0.692

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