Question
P & G Ltd has 1000 credit customers. They are classified according to the size of their account balances and the timeliness of their payments.
P & G Ltd has 1000 credit customers. They are classified according to the size of their account balances and the timeliness of their payments. The following table shows some of the probabilities of customers being in various categories.
BALANCE | ||||
LAST PAYMENT | p100 to p500 | >p500 | total | |
ON-TIME | 0.45 | 0.85 | ||
LATE | 0.03 | |||
TOTAL | 0.20 | 0.50 |
(b). Calculate the probability that a customer has more than P500 given that he/she is late. (5 marks) (c). Find the probability that any customer is late in paying. (1 mark) (d). Calculate the probability that a customer is on time given that the balance is less than P100. (3 marks) (e). How many customers have a balance of between P100 and P500 and made their payment late? (5 marks)
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