following question to be solved in R Of a finance company’s loans, 1% are defaulted (not completely repaid). The company routinely runs credit checks on all loan applicants. It finds that 30% of defaulted loans went to poor risks, 40% to fair risks, and 30% to good risks. Of the nondefaulted loans, 10% went to poor risks, 40% to fair risks, and 50% to good risks. Use Bayes’ Formula to calculate the probability that a poor-risk loan will be defaulted.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
following question to be solved in R
Of a finance company’s loans, 1% are defaulted (not completely repaid). The company
routinely runs credit checks on all loan applicants. It finds that 30% of defaulted loans went to
poor risks, 40% to fair risks, and 30% to good risks. Of the nondefaulted loans, 10% went to poor
risks, 40% to fair risks, and 50% to good risks. Use Bayes’ Formula to calculate the probability
that a poor-risk loan will be defaulted.
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