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solve all parts A municipal bond service has three rating categories (A, B, and C). Suppose that in the past year of the municipal bonds
solve all parts
A municipal bond service has three rating categories (A, B, and C). Suppose that in the past year of the municipal bonds issued thoughout a country, 50% were rated A 40% were rated B, and 10% were rated c. of the municipal bonds rated A, 60% were issued by cities, 30% by suburbs, and 10% by rural areas of the municipal bonds rated B, 70% were issued by cities, 10% by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 80% were issued by cities, 15% by suburbs, and 5% by rural areas. Complete (a) through (c) below. a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? (Round to three decimal places as needed.) b. What proportion of municipal bonds are issued by cities? (Round to three decimal places as needed.) c. What proportion of municipal bonds are issued by suburbs? (Round to three decimal places as needed.) Step by Step Solution
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