Stats Help
 

Can someone help me figure this out step by step? I've always sucked at math and I'm going to burst out crying soon :(

10% of all mortgage holders at Walls Fargo default on their mortgages. The probability of defaulting on their mortgages and having been previously rejected by another institution for a mortgage is 0.07. The probability of not defaulting on their mortgages and having been previously rejected by another institution for a mortgage is 0.18.

a) What is the probability of a mortgage holder having been previously rejected by another institution GIVEN that they defaulted on their mortgage with Walls Fargo?

b) What is the probability of a mortgage holder having been previously accepted by another institution given that they defaulted on their mortgage with Walls Fargo?

c) What is the probability that a mortgage holder defaults on their mortgage if they had been previously rejected by another institution?

Thanks.... I'll buy whoever helps me a cookie

is this from the bcit text?
if it is, i can look in my notes

its a a handout from the instructor.... I'm essentially stuck on the probability rules cus no matter what I do its wrong...

aw man, sorry can't help you then

try looking at share out, there's always some goodies there that can help you

thanks anyway :)

Do you have the answers to the problems? Post them if you do.

a) P(Reject|Default)= 0.70

b) P(Approve|Default)= 0.30

c) P(Default|Reject)= 0.28

ooooh probability


Ill tried to help later if you still need it

Ok I did A before you posted and got the same thing.

For a.) The definition of conditional probability - P(A|B) = Probability of being previously rejected and that they defaulted on their mortgage (0.07)

divided by the probability of B, which is the probability of defaulting on the loan. (0.10)

0.07/0.10 = 0.7

Thanks d1, then what was all that crap i tried to do like

P(A|B)= P(A and B)/P(B) and going back to square one :(

for conditonal probability draw yourself a chart. - its pretty helpful

anyways:

Rejected (.25) non rejected (.75)



Defaults (.10) 0.07 0.03
Non defaults (.9) 0.18 0.72

1) find reject given default = (0.07)/(.10) =.7
2)find approve given default (0.03)/(.10) =.3
3) find default given reject (0.07)/(0.25) =.28


hope that helps

^ bang on

Remember in stats: when in doubt, draw it out
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