Answer to Question #44713 in Statistics and Probability for max

Question

In studying the relationship between loan delinquency and borrower characteristics, a bank found the following information: • 80% of borrowers have been employed at their present job for 3 or more years, • Of the borrowers who have been employed at their present job for 3 or more years, 5% are behind in their payments • Of the borrowers who have been employed at their present job for less than 3 years, 15% are behind in their payments

If a loan account is randomly selected, what is the probability that the borrower has been employed at their present job for less than 3 years AND is behind in their payments? (a) 0.17 (b) 0.03 (c) 0.20 (d) 0.014 (e) 0.24

If a loan account is randomly selected, what is the probability that the borrower has been employed at their present job for 3 or more years OR is not behind in their payments? (a) 0.76 (b) 0.744 (c) 0.97 (d) 0.83 (e) 0.96

If a loan account is randomly selected from a borrower who has been employed at their present job for 3 or more years, what is the probab