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Unformatted text preview: 36225 – 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....
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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
 finegold
 Statistics

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