The question is presented on the attached file. Please answer asap

. The credit manager of a department store is interested in reducing the amount of money it loses through customer defaults on store credit. The probability that a store credit customer will default in the next 12 months is 0.04. After a careful evaluation of credit records, the credit manager discovers that there is a link between late payments and the event that a customer will default. The manager knows that of the customers who will default in the next 12 months, 80% were late with at least two payments in the last 12 months. Further, of the customers who will not default in the next 12 months, 10% were late with at least two payments in the last 12 months. Let L = \"a specic customer is late with at least two payments in last 12 months,\" D = \"a specic customer defaults during next 12 months.\" (a) \"That is P(L H D)? (b) \"That is P(L)? (c) Are L and D independent? Explain. The store is considering adopting a new policy that will reduce losses from defaults on store credit. It is planning to stop new credit to customers who were late for at least two payments during a 12 month period. [(1) In order to evaluate the impact of this policy, compute P(D|L). Further investigation reveals that of those customers who will default on their store credit in the next 12 months, for 50% this condition is temporary (i.e., they will eventually repay the store after their payments are rescheduled). The remaining 50% of the group of defaulters will never repay the store [i.e., their default is permanent). Let TD 2 LLa specic customer defaults temporarily during next 12 months\" and PD =\"a specic customer defaults permanently during next 12 months.\" rI'hus, D = TD U PD. Moreover, the credit manager believes that all permanent defaulters were late on at least two payments in the previous year: P[L|PD] = 1. (e) What is P(PD|L)