10. A bank classifies borrowers as high risk or low risk. Only 15% of its loans are made to those in the high-risk category. Of all its loans, 5% are in default, and 40% of those in default were made to high-risk borrowers. What is the probability that a high-risk borrower will default?
10. A bank classifies borrowers as high risk or low risk. Only 15% of its loans are made to those in the high-risk category. Of all its loans, 5% are in default, and 40% of those in default were made to high-risk borrowers. What is the probability that a high-risk borrower will default?
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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