Default are to high-risk borrowers


A bank classifies borrowers as "high risk" or "low risk," and 15% of ots loans are made to those in the "high risk" category. Of all its loans, 5% are in default and 40% of those in default are to high-risk borrowers. What is the probability that a high-risk borrower will default?

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: Default are to high-risk borrowers
Reference No:- TGS0749438

Expected delivery within 24 Hours