The Institute for Higher Education Policy, a Washington, D.C.-based research firm, studied the payback of student loans for 1.8 million college students who had student loans that began to become due six years ago (The Wall Street Journal, November 27, 2012). The study found that 50% of the student loans were being paid back in a satisfactory fashion whereas 50% of the student loans were delinquent. The following joint probability table shows the probabilities of the student loan status and whether or not the student had received a college degree.

a. What is the probability that a student with a student loan had received a college degree?
b. What is the probability that a student with a student loan had not received a college degree?
c. Given the student had received a college degree, what is the probability that the student has a delinquent loan?
d. Given the student had not received a college degree, what is the probability that the student has a delinquent loan?
e. What is the impact of dropping out of college without a degree for students who have a studentloan?

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College Degree Yes 26 16 42 No 24 .34 58 Loan Status Satisfactory Delinquent .50 .50