A bank has categorized its credit card accounts as high risk or low risk. The overall default rate on all the bank's credit card accounts is .20. In the past, of the accounts that defaulted, 50 percent were correctly identified by the bank as high risk. What is the default risk for a high-risk credit card account?
A) .50.
B) .15.
C).40.
D).25.
E) There is not enough information to determine the answer.

Question

Quizplus · Accepted Answer

The information provided tells us the overall default rate and the percentage of defaulted accounts that were identified as high risk, but it does not give us the proportion of accounts that are classified as high risk or the default rate specifically for high-risk accounts.

A Bank Has Categorized Its Credit Card Accounts as High