A bank loan officer knows that 12% of the bank's mortgage holders lose their jobs and default

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A bank loan officer knows that 12% of the bank's mortgage holders lose their jobs and default on the loan in the course of 5 years. She also knows that 20% of the bank's mortgage holders lose their jobs during this period. Given that one of her mortgage holders just lost his job, what is the probability that he will now default on the loan?
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Complete Business Statistics

ISBN: 9780077239695

7th Edition

Authors: Amir Aczel, Jayavel Sounderpandian

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