A new applicant, age 45, is applying for a loan. Using the table below, what is the estimated probability the loan will be approved? k = 4.
A) The probable default rate is 75%, the loan will be declined.
B) The probable success rate is 75%, the loan will be approved.
C) The probable success rate is 30%, the loan will be approved.
D) The probable default rate is 25%, the loan will be declined.

Question

A new applicant, age 45, is applying for a loan. Using the table below, what is the estimated probability the loan will be approved? k = 4. 
A) The probable default rate is 75%, the loan will be declined. 
B) The probable success rate is 75%, the loan will be approved. 
C) The probable success rate is 30%, the loan will be approved. 
D) The probable default rate is 25%, the loan will be declined.

Quizplus · Accepted Answer

The Answer of A new applicant, age 45, is applying for a loan. Using the table below, what is the estimated probability the loan will be approved? k = 4. 
A) The probable default rate is 75%, the loan will be declined. 
B) The probable success rate is 75%, the loan will be approved. 
C) The probable success rate is 30%, the loan will be approved. 
D) The probable default rate is 25%, the loan will be declined.

A New Applicant, Age 45, Is Applying for a Loan