B. A firm has classified its customers in two ways: (1) according to whether or not...

 

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B. A firm has classified its customers in two ways: (1) according to whether or not the account is overdue, and (2) whether the account is new (less than 12 months) or old. An audit of company records revealed the following joint probabilities. New Overdue 0.13 Old 0.24 Not overdue 0.25 0.38 An account is selected at random. i. What is the probability that it is an old account that is overdue? (1 mark) ii. What is the probability that it is an old account? (1 mark) iii. What is the probability that the account is overdue if it is a new account? (2 marks) iv. Are the classifications new/old and overdue/not overdue independent? (2 marks) B. A firm has classified its customers in two ways: (1) according to whether or not the account is overdue, and (2) whether the account is new (less than 12 months) or old. An audit of company records revealed the following joint probabilities. New Overdue 0.13 Old 0.24 Not overdue 0.25 0.38 An account is selected at random. i. What is the probability that it is an old account that is overdue? (1 mark) ii. What is the probability that it is an old account? (1 mark) iii. What is the probability that the account is overdue if it is a new account? (2 marks) iv. Are the classifications new/old and overdue/not overdue independent? (2 marks)