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Suppose That an Actual (Not Perfectly Reliable)credit Report Has the Following

question 30

Essay

Suppose that an actual (not perfectly reliable)credit report has the following characteristics based on historical data; in cases where the customer did not default on the approved loan,the probability of receiving a favorable recommendation on the basis of the credit investigation was 80%,while in cases where the customer defaulted on the approved loan,the probability of receiving a favorable recommendation on the basis of the credit investigation was 25%.Given this information,what are the posterior probabilities that an earthquake will and will not occur,given the geologists predictions?


Definitions:

Dizziness

A sensation of unsteadiness or a feeling of movement within the head that can lead to balance issues.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that leads to avoidance behavior.

Treatment

A specific regimen or procedure aimed at curing or managing a disease, disorder, or injury, often tailored to individual patient needs.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event.

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