An analyst estimates that the probability of default on a seven year AA-rated bond is 0.49, while that on a seven year A-rated bond is 0.51. The probability that they will both default is 0.26. what is the probability that at least one of the bonds defaults? what is the probability that neither the seven year AA-rated bond nor the seven-year A-rated bond defaults? What is the probability that neither the seven-year AA-rated bond nor the seven-year A-rated bond defaults? round all answers to 2 decimal places
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.
An analyst estimates that the
what is the probability that at least one of the bonds defaults?
what is the probability that neither the seven year AA-rated bond nor the seven-year A-rated bond defaults?
What is the probability that neither the seven-year AA-rated bond nor the seven-year A-rated bond defaults?
round all answers to 2 decimal places
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
