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Question - All the Banks in Australia analysed the status of customer accounts at the end of the concessions period for loan repayments due to Global Pandemic. According to that one of the banks classified their loan accounts in two different ways (i)" overdue" and "not overdue" and (ii) Old and new. The table below shows the identified probabilities.
Overdue
Not overdue
New
0.06
0.13
Old
0.52
0.29
One account is randomly selected.
(i) If the account is overdue, what is the probability that it is new?
(ii) If the account is new, what is the probability that it is overdue?
(iii) Is the age of the account related to whether it is overdue? Explain.
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