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You are working for a bank and your supervisor asked you to predict the default risk for each of the risk categories. Th
Posted: Wed May 11, 2022 2:52 pm
by answerhappygod
- You Are Working For A Bank And Your Supervisor Asked You To Predict The Default Risk For Each Of The Risk Categories Th 1 (29.92 KiB) Viewed 24 times
You are working for a bank and your supervisor asked you to predict the default risk for each of the risk categories. The risk categories are coded A or B and are developed based on historical loan records. You construct the table below to summarize your assessment of the joint probabilities of customer risk categories (A or B) and the outcome (Pay back or default). Outcome Signal А B Pay Back 0.52 0.36 Default 0.04 0,08 What is the probability of risk category A given these joint probabilities? (Show your calculation) (3) What is the probability that a customer "default" given her risk is categorized in A? (Show your caleulation) (3) What is the probability that a customer "pay back" given her risk is categorized in B? (Show your calculation)