The institute for Higher Education Policy, a Washington, DC - based research firm, studied the payback of student loans for 1.8 million college students who had student loans that began to become due six years prior. The study found that 50% of the student loans were being paid back in a satisfactory fashion, and 50% of the student loans were delinquent. The following joint probability table shows the probabilities of a student's loan status and whether or not the student had received a college degree. Show steps in Excel. College Degree Yes No Loan Status Satisfactory 0.26 0.24 0.5 Delinquent 0.16 0.34 0.5 0.42 0.58 1 a What is the probability that a student with a student loan had received a college degree? b What is the probability that a student with a student loan had not received a college degree? c Given the student had received a college degree, what is the probability that the student has a delinquent loan? d. Given the student had not received a college degree, what is the probability that the student has a delinquent loan? e. What is the impact of dropping out of college without a degree for students who have a student loan?
The institute for Higher Education Policy, a Washington, DC - based research firm, studied the payback of student loans for 1.8 million college students who had student loans that began to become due six years prior. The study found that 50% of the student loans were being paid back in a satisfactory fashion, and 50% of the student loans were delinquent. The following joint
College Degree
Yes No
Loan Status Satisfactory 0.26 0.24 0.5
Delinquent 0.16 0.34 0.5
0.42 0.58 1
a What is the probability that a student with a student loan had received a college degree?
b What is the probability that a student with a student loan had not received a college degree?
c Given the student had received a college degree, what is the probability that the student has a delinquent loan?
d. Given the student had not received a college degree, what is the probability that the student has a delinquent loan?
e. What is the impact of dropping out of college without a degree for students who have a student loan?
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