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(Solved) : 1 Likelihood Getting Completely Factual Financial Statement Credit Card Applicants Departm Q27546161 . . .

1·The likelihood of getting a completely factual financial statement from credit card applicants in a department store chain is 0.90. Eighty percent of the applicants filing factual applications prove to be good credit risks. Only 30% of the applicants filing non-factual applications prove to be good credit risks. A spot check of applications that you, as credit manager, have approved is begun. (a) [10 points If you are informed that a randomly selected applicant turned out to be a good credit risk for the chain, how likely is it that the application was not completely factual? (b) 10 points If another applicant turned out to be a bad credit risk for the chain, how likely is it that the application was factual?

1·The likelihood of getting a completely factual financial statement from credit card applicants in a department store chain is 0.90. Eighty percent of the applicants filing factual applications prove to be good credit risks. Only 30% of the applicants filing non-factual applications prove to be good credit risks. A spot check of applications that you, as credit manager, have approved is begun. (a) [10 points If you are informed that a randomly selected applicant turned out to be a good credit risk for the chain, how likely is it that the application was not completely factual? (b) 10 points If another applicant turned out to be a bad credit risk for the chain, how likely is it that the application was factual? Show transcribed image text

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