1. The internal auditing staff of an local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are delinquent more than 90 days overdue. The historical records of the company show that over the past 8 years 13 % of accounts are delinquent. For this quarter, the auditing staff randomly selected 25 customer accounts. What is the probability the no more than 40 accounts will be classified as delinquent?

2. A PH.D graduate has applied for a job with two universities, A and B. the graduate feels that she has a 60% chance of receiving an offer from university A, and a 50% chance of receiving an offer from university B. if she receives an offer from university B, she believes that she has an 80% chance of receiving an offer from university A:

- What the probability that both universities will make her an offer?

- What the probability that at least one university will make her an offer?