Question: Look again at question 5. Suppose (a) That it costs $95 to classify each new credit applicant and (b) That an almost equal proportion of

Look again at question 5. Suppose

(a) That it costs $95 to classify each new credit applicant and

(b) That an almost equal proportion of new applicants falls into each of the four categories. In what circumstances should Mr. Khana not bother to undertake a credit check?

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