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Illustration 16.60. A bank has a test designed to establish the credit rating of a loan applicant. If the persons, who default (D), 90% fail the test (F). Of the persons, who will repay the bank (ND), 5% fail the test. Furthermore, it is given that 4% of the population is not worthy of ¢redit ; i.e., P(D) = .04. Given that someone failed the test, what is the probability that he actually will default (when given a load)?

Illustration 16.60. A bank has a test designed to establish the credit rating of a loan applicant. If the persons, who default (D), 90% fail the test (F). Of the persons, who will repay the bank (ND), 5% fail the test. Furthermore, it is given that 4% of the population is not worthy of ¢redit ; i.e., P(D) = .04. Given that someone failed the test, what is the probability that he actually will default (when given a load)?

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section: Chapter Questions
Problem 8CR
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Illustration 16.60. A bank has a test designed to establish the credit rating of a loan applicant. If the persons, who default (D), 90% fail the test (F). Of the persons, who will repay the bank (ND), 5% fail the test. Furthermore, it is given that 4% of the population is not worthy of credit ; i.e., P(D) = .04. Given that someone failed the test, what is the probability that he actually will default (when given a load)? CS Scanned with CamScanner
Transcribed Image Text:Illustration 16.60. A bank has a test designed to establish the credit rating of a loan applicant. If the persons, who default (D), 90% fail the test (F). Of the persons, who will repay the bank (ND), 5% fail the test. Furthermore, it is given that 4% of the population is not worthy of credit ; i.e., P(D) = .04. Given that someone failed the test, what is the probability that he actually will default (when given a load)? CS Scanned with CamScanner
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