4 29 Of a finance company s loans 1 are defaulted not completely repaid The company routinely runs credit checks on all loan applicants It finds that 30 of defaulted loans went to poor risks 40 to fair risks and 30 to good risks Of the nondefaulted loans 10 went to poor risks 40 to fair risks and 50 to good risks Use Bayes Formula to calculate the probability that a poor risk loan will be defaulted