A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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A bank has studied its chequing accounts and found that 94% of all chequing accounts have been open for at least one year, the remaining percentage of chequing
accounts have been open for less than a year. The bank also determined that for all chequing accounts that have been open for less than one year, the percentage of
cheques returned due to insufficient funds is 4%. For chequing accounts that have been open for at least one year, only 1% of cheques were returned due to
insufficient funds.
(a) What is the probability that a cheque processed by this bank will be returned due to insufficient funds?
(b) If a cheque is returned due to insufficient funds, what is the probability that it came from a bank account that has been open for more than one year?
el orodit
th
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Transcribed Image Text:A bank has studied its chequing accounts and found that 94% of all chequing accounts have been open for at least one year, the remaining percentage of chequing accounts have been open for less than a year. The bank also determined that for all chequing accounts that have been open for less than one year, the percentage of cheques returned due to insufficient funds is 4%. For chequing accounts that have been open for at least one year, only 1% of cheques were returned due to insufficient funds. (a) What is the probability that a cheque processed by this bank will be returned due to insufficient funds? (b) If a cheque is returned due to insufficient funds, what is the probability that it came from a bank account that has been open for more than one year? el orodit th
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