4.76 Loan officer decision.

A loan officer is considering a loan request from a customer of the bank. Based on data collected from the bank's records over many years, there is an 8% chance that a customer who has overdrawn an account will default on the loan. However, there is only a 0.6% chance that a customer who has never overdrawn an account will default on the loan. Based on the customer's credit history, the loan officer believes there is a 40% chance that this customer will overdraw his account. Let be the event that the customer defaults on the loan, and let be the event that the customer overdraws his account.