A bank collected data of all its customers. Customers who repaid their consumer loans (Good Credit) had an average deposit of X = $500 with a Good Credit standard deviation of OGood Credit=$75. Customers who defaulted on their consumer loans (Bad Credit) had an average weekly deposit of X Bad Credit= $300 with a standard deviation of also OBad Credit=$75. As a result of the data collection, the bank decides to give loans to customers only who do not have weekly deposits of at least $380. Bad Good Credit Credit 100 200 300 400 500 600 700

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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A bank collected data of all its customers. Customers who repaid their consumer
loans (Good Credit) had an average deposit of X
= $500 with a
Good Credit
standard deviation of OGood Credit=$75. Customers who defaulted on their
consumer loans (Bad Credit) had an average weekly deposit of X Bad Credit= $300
with a standard deviation of also OBad Credit=$75. As a result of the data
collection, the bank decides to give loans to customers only who do not have weekly
deposits of at least $380.
Bad
Good
Credit
Credit
100
200
300 400 500
600
700
Transcribed Image Text:A bank collected data of all its customers. Customers who repaid their consumer loans (Good Credit) had an average deposit of X = $500 with a Good Credit standard deviation of OGood Credit=$75. Customers who defaulted on their consumer loans (Bad Credit) had an average weekly deposit of X Bad Credit= $300 with a standard deviation of also OBad Credit=$75. As a result of the data collection, the bank decides to give loans to customers only who do not have weekly deposits of at least $380. Bad Good Credit Credit 100 200 300 400 500 600 700
What's the probability that a bad credit customer receives a loan (Type Il error), ß=
0.043
0.143
0.243
0.343
Transcribed Image Text:What's the probability that a bad credit customer receives a loan (Type Il error), ß= 0.043 0.143 0.243 0.343
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