1. Math
  2. Statistics And Probability
  3. problem 2 a customer has approached a bank for a...

Question: problem 2 a customer has approached a bank for a...

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Problem 2. A customer has approached a bank for a loan. Without further information, the bank believes there is a 7% chance that the customer will default on the loan. The bank can run a credit check on the customer. The check will yield either a favorable or an unfavorable report. From past experience, the bank believes that P(favorable report being received | customer will default) 2 40 and 95 100 P(favorable report customer will not default) If a favorable report is received, what is the probability that the customer will default on the loan?

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