When you sign up for a credit card, do you read the contract carefully? In a FindLaw.com survey, individuals were asked, “How closely do you read a contract for a credit card?” (USA Today, October 16, 2003). The findings were that 44% read every word, 33% read enough to understand the contract, 11% just glance at it, and 4% don’t read it at all. a. For a sample of 500 people, how many would you expect to say that they read every word of a credit card contract? b. For a sample of 500 people, what is the probability that 200 or fewer will say they read every word of a credit card contract? c. For a sample of 500 people, what is the probability that at least 15 say they don’t read credit card contracts?
When you sign up for a credit card, do you read the contract carefully? In a FindLaw.com
survey, individuals were asked, “How closely do you read a contract for a credit card?”
(USA Today, October 16, 2003). The findings were that 44% read every word, 33% read
enough to understand the contract, 11% just glance at it, and 4% don’t read it at all.
a. For a sample of 500 people, how many would you expect to say that they read every
word of a credit card contract?
b. For a sample of 500 people, what is the probability that 200 or fewer will say they read
every word of a credit card contract?
c. For a sample of 500 people, what is the probability that at least 15 say they don’t read
credit card contracts?
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