This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 36-225 – Handout for Lecture # 9September 15, 20081. A new method (method B) for teaching a certain industrial skill was developed, and it wasfound that there is 90% chance of successfully learning the skill when this method is used.Even though there is only 80% chance of learning the skill when any exisiting method otherthan method B is used, method B is used only 25% of the time since it is much more expensive.(a) What is the probability that a worker will be successful in learning the skill?(b) A worker was taught the skill and was successful in learning it correctly.What is theprobability that he was taught by methods B?2. A bank is considering extending credit to a new customer and is interested in the probabilitythat the client will default on the loan.Based on the data that the bank has accumulatedover many years of business, there is a 5% chance that a customer who has overdrawn anaccount will default on the loan, whereas there is only a 0.5% chance that a customer whohas never overdrawn an account will default on the loan. Unfortunately, the bank does nothas never overdrawn an account will default on the loan....
View Full Document
This note was uploaded on 05/16/2011 for the course STATISTICS 225 taught by Professor Finegold during the Spring '11 term at Carnegie Mellon.
- Spring '11