There's a question on probability I can't seem to figure out.
There's a table that goes like this
The probabilities on in the table do not add up to 100%.
The question also said the probability of having a CRO overall was 25%.
The question asks what would the Probability that a firm has a CRO given that it has defaulted? Basically P(C|D)
How would one solve this? The numbers don't really matter but Im trying to see the concept on how one would solve this
If I use bayes, how do I get the Probability of Default / P(D) overall?
There's a table that goes like this
| Firm has CRO | Firm has no CRO | |
| Firm Defaults in 3 years | % | % |
| Firm Not Default in 3 years | % | % |
The probabilities on in the table do not add up to 100%.
The question also said the probability of having a CRO overall was 25%.
The question asks what would the Probability that a firm has a CRO given that it has defaulted? Basically P(C|D)
How would one solve this? The numbers don't really matter but Im trying to see the concept on how one would solve this
If I use bayes, how do I get the Probability of Default / P(D) overall?
