1. Given that 1 in 8 customers will not renew their contract after 1 year, the fraction of customers who will cancel is \(\frac { 1} { 8} \).
2. To find the number of customers who will cancel, multiply the total number of customers by the fraction who will cancel:
   \[\text { Number of cancellations} = 720 \times \frac { 1} { 8} \]
3. Simplify the expression:
   \[720 \times \frac { 1} { 8} = \frac { 720} { 8} \]
   Therefore, the correct answer is \(720 / 8\).

Supplemental Knowledge

Probability and statistics consider expected value a measure of center of a probability distribution; it represents the average outcome if an experiment is repeated many times and used here as a means to ascertain average number of customers who cancel contracts.

Life in Context

Understanding expected value is integral for many fields including business, insurance and finance. Businesses use it to predict customer behavior while insurers use it when setting premiums and investors use it when analyzing potential returns on investments.

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