A firm has classified its customers in two ways:

(1) according to whether the account is overdue and (2) whether the account is new (less than 12 months) or old. An analysis of the firm’s records provided the input for the following table of joint probabilities.

Overdue Not Overdue New .06 .13 Old .52 .29 One account is randomly selected.

a. If the account is overdue, what is the probability that it is new?

b. If the account is new, what is the probability that it is overdue?

c. Is the age of the account related to whether it is overdue? Explain.