Credit scorecards are used by financial institutions to help decide to whom loans should be granted. An

Question:

Credit scorecards are used by financial institutions to help decide to whom loans should be granted. An analysis of the records of one bank produced the following probabilities.

a. What proportion of loans are fully repaid?
b. What proportion of loans given to scorers ofÂ less than 400 fully repay?
c. What proportion of loans given to scorers of 400 or more fully repay?
d. Are score and whether the loan is fully repaid independent?Explain.