3.45 A bank classifies borrowers as high risk or low risk. Only 15% of its loans are...

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3.45 A bank classifies borrowers as high risk or low risk.

Only 15% of its loans are made to those in the highrisk category. Of all its loans, 5% are in default, and 40% of those in default were made to high-risk borrowers.

What is the probability that a high-risk borrower will default?

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Statistics For Business And Economics

ISBN: 9780273767060

8th Global Edition

Authors: Paul Newbold, Mr William Carlson, Ms Betty Thorne

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Question Posted: Sep 24, 2024 01:00 AM

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3.45 A bank classifies borrowers as high risk or low risk. Only 15% of its loans are...

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Statistics For Business And Economics

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