Final answer:
To find the expected number of reports of lost or stolen cards, convert the percentage to a decimal and multiply by the total number of holders. With a 0.02% rate of reports and 15,000 credit cards in Memphis, one would expect 3 reports per month.
Step-by-step explanation:
The question asks about the probability of only 0.02% of credit card holders reporting the loss or theft of their credit cards each month when there are 15,000 credit cards in Memphis. To calculate this probability, we need to use the given percentage and the total amount of credit cards. First, convert the percentage to a decimal by dividing it by 100: 0.02% = 0.0002. Next, multiply the decimal by the total number of credit card holders in Memphis: 0.0002 * 15000 = 3. Therefore, one would expect on average that 3 cardholders will report the loss or theft of their credit cards each month in Memphis.