Question: Hey I'm having a hard time with this question, thanks for helping An analyst of personal loans in a local bank revealed the following facts:

Hey I'm having a hard time with this question, thanks for helping

An analyst of personal loans in a local bank revealed the following facts: 10% of all loans are in default; 20% of loans in default are mortgages and 70% of those not in default are mortgages.

a.What is the probability that a loan chosen at random is both in default (D) and a mortgage (M)?

b.What is the probability that the loan is in default or a mortgage?

c.If you were to randomly draw 100 loans in default from the population described above, what would be the probability that, in this sample, more than 25% of the loans are mortgages?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

12-21. SEA Reporting. (LO12-4) The City of Bancroft has produced a Service Efforts and Accomplishments report for the past three years for each of its operating departments. Key performance...

The pandemic has caused the massive growth of public debt in many countries. With reference to the latest supply bill based on the research attached below devlop 4 research questions LO INTRODUCTION:...

The pandemic has caused the massive growth of public debt in many countries. With reference to the latest supply bill based on the research attached below devolpe four research questions LO...

Q1. Discuss how Islamic bank?s compliance with Basel requirements of capital adequacy can be improved? (1 page) Q2. Download the annual report of Commercial Bank of Dubai for the year 2014 and...

MH0007 0 0 7 7645065 Ca s ey B u rt Fra nk T. R o tha e rm e l Bank of America (in 2010) and the New Financial Landscape Stephanie Milner spent the fall and winter of 2008-2009 like many Americans,...

571 Case 16 The Maria and Sancho Ruiz Case COMPREHENSIVE FINANCIAL PLANNING CASE Maria and Sancho anticipate living until Sancho is ninety-five years Maria Ruiz recently turned age fifty. She heard...

Pls help me to answer the think critically 11.1, 11.2 & Review Concepts. This book is Banking system 2nd edition 11. Robbery Prevention and Response goals - Discuss how security measures can prevent...

Please analyze and contrast the Introduction and Literature Review of the articles below. Paul Krugman by Jason Briggeman30 Paul Krugman (1953-) was raised on Long Island "in a safe middle-class...

Need help with these discussion postings (in a document) and assignments (all in separate files), all directions are included as well. FINANCE DIRECTIONS Need to provide 1 original post substantial...

The Adora and Jorge Tun Case A CASH FLOW AND EDUCATION PLANNING CASE Adora and Jorge were married seven years ago when Jorge was thirty-five years old. He met Adora, who was also thirty-five years of...

This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee. 1...

If the per exchange rate decreases by 0.0007 from its value in Table 3.2, what will be the change in the per exchange rate?

Procter & Gamble has been the leading soap manufacturer in the United States since 1879, when it introduced Ivory soap. However, late in 1991, its major rival, Lever Bros. (Unilever), overtook it by...

Items that are either manufactured or purchased for resale in the normal course of business are called: MaterialsInventoryPurchasesSupplies Bookmark question for later Which of the following is an...

how to do income tax for busines Appendix E-2018 Practice Set Assignments- Comprehensive Tax Return Problems PROBLEM 1-INDIVIDUALS (FORM 1040) Jason R. and Jenni L. Dane are married and live at 13071...