Question

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.True or False?

Answer 1

The statement is FALSE because 12 is not 8% of the total number of credit card holders.

Step-by-step explanation:

The question is asking whether it is true or false that on one recent day, a bank issued 12 credit cards to new customers, given that past data show that 8% of all credit card holders default at some time in their lives. To answer this question, we need to determine if the 12 credit cards issued represent 8% of the total number of credit card holders.

To find the total number of credit card holders, we can set up a proportion:

8/100 = 12/x

Cross multiplying, we get 8x = 1200. Dividing both sides by 8, we find x = 150.

So, if on one recent day the bank issued 12 credit cards, and the total number of credit card holders is 150, then the statement is FALSE because 12 is not 8% of 150.