Suppose That the Cumulative Probability of a Company Defaulting by Years

question 17

Multiple Choice

Suppose that the cumulative probability of a company defaulting by years one,two,three and four are 3%,6.5%,10%,and 14.5%,respectively.What is the probability of default in the fourth year conditional on no earlier default?

• A) 4.5%
• B) 5.0%
• C) 5.5%
• D) 6.0%

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Definitions:

Monitoring Algorithms

Computational techniques designed to track, analyze, and report data or performance metrics in real-time or over specified intervals.

Boolean Searches

A type of search allowing users to combine keywords with operators (such as AND, NOT, OR) to produce more relevant results.

Enterprise Search Engines

Denotes technology solutions used within organizations to allow employees to search for and access information stored across various internal databases and systems.

Company's Network

The collection of business relationships, partnerships, or connections a company maintains, often leveraging it for business opportunities or resources.