1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iVinArrow [24]
3 years ago
13

A local bank reviewed its credit card policy with the intention of recalling some of its credit cards. In the past approximately

8% of cardholders defaulted, leaving the bank unable to collect the outstanding balance. Hence, management established a prior probability of 0.08 that any particular cardholder will default. The bank also found that the probability of missing a monthly payment is 0.20 for customers who do not default. Of course, the probability of missing a monthly payment for those who default is 1.
a. Given that a customer missed monthly payments, compute the posterior probability that the customer will default (to 3 decimals).


b. The bank would like to recall its credit card if the probability that a customer will default is greater than 0.20. Should the bank recall its credit card if the customer misses a monthly payment? Why or why not?


- Select your answer -
Business
1 answer:
ipn [44]3 years ago
7 0
I think A sorry if i’m wrong
You might be interested in
Conducting research about an occupation, company, or job can increase your employability by up to _____.
Delvig [45]
<span>Conducting research about an occupation, company, or job can increase your employability by up to 25%. The correct answer is C.
You should always research the job that you are applying for and the company that you want to work in because it shows your possible employer that you are really interested in the job and would like to have it. Thus, they are more likely to actually give you that job.</span>
5 0
3 years ago
On August 1, 2018, Kira purchased 100 shares of ITC stock for $5,000. There were no subsequent adjustments to her basis. On Augu
padilas [110]

Answer:

b. Short-term loss of $700 and a long-term gain of $900.

Explanation:

August 1, 2018, price per share $50

August 1, 2019, sold 50 shares at $36, resulting in a short term capital loss of ($700)

August 31, 2019, sold 50 shares at $68, resulting in a long term capital gain of $900

If you own a stock for 1 year or less, any gain/loss will be considered short term. If you own a stock for more than 1 year, any gain/loss will be considered long term.

8 0
3 years ago
Why might one doubt that current forms of digital money, such as Bitcoin, will replace more traditional fiat currencies?
NISA [10]

Answer:

The correct answer is (e)

Explanation:

Digital currency, such as bitcoin is out of government’s control. Similarly, the market decides their price and that makes them unpredictable. Likewise, the digital money has various problems that make them different and hard to trust on, such as, they can’t be used as means of payment, the unit of account, store of value and standard value. Because fiat money is equipped with all those advantages, which is why people doubt that current forms of digital will replace traditional money.

7 0
2 years ago
Laura understands the reasons her boss assigned other team members to the better projects but thinks the way he told her about i
ratelena [41]

Answer: interactional

Organizational justice refers to an employee ’s perceptions of fairness in the place of his work. There are four components of organizational justice: .distributive, informational interactional, and procedural. Of the four, Laura is feeling interactional injustice which based on interpersonal interactions and treatment of his boss towards her team members.

8 0
3 years ago
What is the differences and similarities between rental goods services and non goods services
alexira [117]

Answer and Explanation:

Rented-Goods Services are represented by retailom where consumers can own a good, or use a service for a specified time. As an example of this, we can mention hotel rooms, ski clothes, cars, houses, among others.

Nongoods Services are also represented by retail, but it presents personal services, where consumers can try them, judge them and then decide if they want to own them.

4 0
2 years ago
Other questions:
  • In business, failure usually means what?
    8·1 answer
  • Why is it important to include industry terminology in a résumé??
    10·1 answer
  • The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Orange Company as
    5·1 answer
  • One year ago, the Jenkins Family Fun Center deposited $4,500 into an investment account for the purpose of buying new equipment
    14·1 answer
  • Exeter Enterprise Inc. reported net sales of $250 million last year and generated a net income of $55.00 million. Last year’s ac
    13·1 answer
  • The ledger of Mai Company includes the following accounts with normal balances: Common Stock, $10,200; Dividends, $1,400; Servic
    14·1 answer
  • King, CPA, is auditing the financial statements of Cycle company, a client that has receivables from customers arising from the
    13·1 answer
  • Rorry Company uses a job cost system. Labor costs for the period were $21,000, of which $3,000 were indirect. The journal entry
    13·1 answer
  • Why it is important to prepare a bank reconciliation statement at the end of each month​
    13·1 answer
  • The accounting measure of a firm's stock price is called ________. book value market value liquidation value tobin's q
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!