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In examining borrower characteristics versus loan delinquency, a bank has collected the following information:

(1) 15% of the borrowers who have been employed at their present job for less than 3 years are behind in their payments,

(2) 5% of the borrowers who have been employed at their present job for at least 3 years are behind in their payments, and

(3) 80% of the borrowers have been employed at their present job for at least 3 years. Given this information:

a. What is the probability that a randomly selected loan account will be for a person in the same job for at least 3 years who is behind in making payments?

b. What is the probability that a randomly selected loan account will be for a person in the same job for less than 3 years or who is behind in making payments?

c. If a loan account is behind, what is the probability that the loan is for a person who has been in the same job for less than 3 years?

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Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M92213887

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