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

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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: 9781292436845

10th Global Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

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Question Posted: Oct 31, 2024 03:01 AM

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

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Statistics For Business And Economics

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