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A loan officer knows that 18% of the bank's mortgage holders will lose their jobs and...

A loan officer knows that 18% of the bank's mortgage holders will lose their jobs and default on their loan in the course of 5 years. She also knows that 22% of the banks mortgage holders will lose their jobs within this period. Given that one of the mortgage holders just lost their job. What is the probability that he will now default on the loan. quantitative methods

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Answer #1

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Therefore, the probability that he will now default on the loan given that the mortgage holder just lost his job is 0.8182

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