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Suppose you are trying to decide whether to extend credit to a customer. Based on your experience, customers with a good credit score (above 700)
Suppose you are trying to decide whether to extend credit to a customer. Based on your experience, customers with a good credit score (above 700) are very likely to repay the loan, with only 2% ever falling behind on their payments. Customers with credit scores below 700, however, have a 6% chance of falling behind on their loans. The likelihood that a customer has a score above 700 is 40%. If a randomly selected customer has fallen behind on the loan, what is the probability that this customer has a low credit score (below 700)
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