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When applying for insurance, potential cus- tomers are asked if they have good or bad credit. Just before approving the new cus- tomer, the insurance company orders a credit report to verify the customer's actual credit rating. Historically, 49% of customers with bad credit claim they have good credit and 12% of customers with good credit misreport they have bad credit. If the insurance com- pany has set its credit standards so that 51% of approved customers have good credit, what is the probability an approved customer has good credit, given that they claimed to have good credit during the application process?

When applying for insurance, potential cus- tomers are asked if they have good or bad credit. Just before approving the new cus- tomer, the insurance company orders a credit report to verify the customer's actual credit rating. Historically, 49% of customers with bad credit claim they have good credit and 12% of customers with good credit misreport they have bad credit. If the insurance com- pany has set its credit standards so that 51% of approved customers have good credit, what is the probability an approved customer has good credit, given that they claimed to have good credit during the application process?

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.2: Introduction To Probability
Problem 52E
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When applying for insurance, potential cus- tomers are asked if they have good or bad credit. Just before approving the new cus- tomer, the insurance company orders a credit report to verify the customer's actual credit rating. Historically, 49% of customers with bad credit claim they have good credit and 12% of customers with good credit misreport they have bad credit. If the insurance com- pany has set its credit standards so that 51% of approved customers have good credit, what is the probability an approved customer has good credit, given that they claimed to have good credit during the application process? Round answer to the nearest whole percent. Answer in units of percent. Answer in units of percent.
Transcribed Image Text:When applying for insurance, potential cus- tomers are asked if they have good or bad credit. Just before approving the new cus- tomer, the insurance company orders a credit report to verify the customer's actual credit rating. Historically, 49% of customers with bad credit claim they have good credit and 12% of customers with good credit misreport they have bad credit. If the insurance com- pany has set its credit standards so that 51% of approved customers have good credit, what is the probability an approved customer has good credit, given that they claimed to have good credit during the application process? Round answer to the nearest whole percent. Answer in units of percent. Answer in units of percent.
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