Answer:
(a) The percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.
(b) The percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.
Explanation:
Note: This question is not properly arranged. It is therefore, properly rearranged before answering the question as follows:
Suppose that 57% of all people with credit records improve their credit ratings within three years. Suppose that 22% of the population at large have poor credit records, and of those only 25% will improve their credit ratings within three years. (a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years? (b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?
The explanation of the answers is now provided as follows:
Based on the question, we have:
Percentage that improve credit rating = 57%
Percentage that do NOT improve credit rating = 100% - Percentage that improve credit rating = 100% - 57% = 43%
Percentage with poor credit rating = 22%
Percentage with good credit rating = 100% - Percentage with poor credit rating = 100% - 22% = 78%
Therefore, we have:
(a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years?
Percentage with poor credit rating that will improve credit records = Percentage with poor credit rating * Percentage that improve credit rating = 57% * 22% = 12.54%
Therefore, the percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.
(b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?
Percentage with good credit rating that will improve credit rating = Percentage that improve credit rating * Percentage with good credit rating = 57% * 78% = 44.46%
Therefore. the percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.
