Economics and Finance
Most banks charge a monthly fee for a checking account, in addition to ATM, overdraft, and other fees. However, 72% of credit unions offer checking accounts with no monthly fees. Suppose a bank auditor selects credit unions at random.
a. What is the probability that the second credit union selected will be the first to offer free checking?
b. What is the probability that the first credit union to offer free checking will be one of the first three?
c. Suppose the first credit union to offer free checking is the 10th selected. Is there any evidence to suggest that the claim (72%) is false? Justify your answer.