2. (8%) A local bank reviewed its credit card policy with the intention of recalling some of its credit cards. In the past approximately 5% of cardholders defaulted, leaving the bank unable to collect the outstanding balance. Hence, management established a prior probability of 0.05 that any particular cardholder will default. The bank also found that the probability of missing a monthly payment is 0.20 for customers who do not default. Of course, the probability of missing a monthly payment for those who default is 1.