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Credit card companies rapidly assess transactions for fraud. In each day, a large card issuer assesses 10,000,000 transactions. Of these, 0.001% are fraudulent. If their
Credit card companies rapidly assess transactions for fraud. In each day, a large card issuer assesses 10,000,000 transactions. Of these, 0.001% are fraudulent. If their algorithm identifies 90% of all fraudulent transactions but also 0.0001% of legitimate transactions, what is the probability that a transaction is fraudulent if it has been flagged?
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