14. A mortgage holding company has found that 2% of its mortgage holders default
ID: 3382842 • Letter: 1
Question
14. A mortgage holding company has found that 2% of its mortgage holders default on their mortgage and lose the property. Furthermore, 90% of those who default are late on at least two monthly payments over the life of their mortgage as compared to 45% of those who do not default. What is the joint probability that a mortgagee has one or less late monthly payments and does not default on the mortgage?
A) 0.143
B) 0.267
C) 0.345
D) 0.539
E) 0.623
Explanation / Answer
14. A mortgage holding company has found that 2% of its mortgage holders default
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.