A firm has classified its customers in two ways: according to whether the account is overdue and whether the account is new (less than 12 months) or old. An analysis of the firm's records provided the input for the following table of joint probabilities: Overdue Not overdue New 0.07 0.16 Old 0.55 0.22 One account is selected at random. A. If the account is overdue, what is the probability that it is new?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A firm has classified its customers in two ways: according to whether the account is overdue and whether the account is new (less than 12 months) or old. An analysis of the firm's records provided the input for the following table of joint probabilities:
| Overdue | Not overdue | |
| New | 0.07 | 0.16 |
| Old | 0.55 | 0.22 |
One account is selected at random.
A. If the account is overdue, what is the probability that it is new?
B. If the account is new, what is the probability that it is overdue?
Given,
| Overdue | Not overdue | |
| New | 0.07 | 0.16 |
| Old | 0.55 | 0.22 |
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