The Probability of a Firm Defaulting Each Year,given That It

question 15

Multiple Choice

The probability of a firm defaulting each year,given that it has not defaulted in prior years is 10%.What is the probability that it will have defaulted at some time in the first 10 years? Approximately:

• A)50%
• B)65%
• C)80%
• D)100%

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Definitions:

Facial

Pertaining to the face, or a beauty treatment for the face intended to cleanse, improve, and enhance the skin.

Chest Hair

Terminal hair that grows on the chest of human adults, more commonly in males after puberty.

Primary Male Sex Characteristic

Refers to the biological and physiological features present at birth that define male anatomy, including the testes and penis.

Testes

Male reproductive organs responsible for producing sperm and hormones, notably testosterone.