Answer
Since 13% of the sites are lost after 2 years, we have
P(site is lost after 2 years) = 0.13
P(all 7 references still good 2 years later) = [1 - P(site is lost after 2 years)]$^{7}$
$= [1 - (0.13)]^{7}$
$= (0.87)^{7}$
$= 0.377$
Work Step by Step
as given above