Question: Credit Analysis Problem: OB 1's credit manager studied its customer and discovered that 92% were prompt payers. The records also showed that 18% of the

Credit Analysis Problem: OB 1's credit manager studied its customer and discovered that 92% were prompt payers. The records also showed that 18% of the slow payers and 3%of the prompt payers subsequently defaulted. The company now has 1500 accounts in its books, none of which has defaulted. What is the total expected number of defaults, assuming no repeat business?

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