From industry statistics, a credit card company knows that 0.8 of itspotential card holders are good credit risks and 0.2 are bad credit risks.The company uses discriminant analysis to screen credit card applicantsand determine which ones should receive credit cards. The companyawards credit cards to 70% of those who apply. The company has foundthat of those awarded credit cards, 95% turn out to be good credit risks.What is the probability that an applicant who is a bad credit risk will bedenied a credit card?

According to the provided information of theproblem and by using the definition ofconditional…

Answered: ntial card holders are good credit ris…

ntial card holders are good credit ris company uses discriminant analysis determine which ones should receiv rds credit cards to 70% of those who of those awarded credit cards, 95%

Essentials Of Business Analytics

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter6: Data Mining

Section: Chapter Questions

Problem 16P

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