3 A customer has approached a bank for a loan. Without further information, the bank believes there is a 4% chance that the customer will default on the loan. The bank can run a credit check on the customer. The check will yield either a favorable or an unfavorable report. From past experience, the bank believes that P(favorable report being received)|

customer will default) =

1/40

, and P(favorable report|

customer will not default) = 

99/100

. If a favorable report is received, what is the probability that the customer will default on the loan?