Homework SourseYou have developed cutter is for evaluating distressed credi
You have developed cutter is for evaluating distressed credits. Firms that do not receive a passing score are classed as likely to go bankrupt within 12 months. You gathet d the following information when validation the criteria: a) 40% of the fi me tested will go bankrupt with 12 months. B) 55% of the firms tested pass it. C) the probability that a from will pass given that it will subsequently survive is 85% . Given the above, what is the p( pass test or no survivor)?
You have developed cutter is for evaluating distressed credits. Firms that do not receive a passing score are classed as likely to go bankrupt within 12 months. You gathet d the following information when validation the criteria: a) 40% of the fi me tested will go bankrupt with 12 months. B) 55% of the firms tested pass it. C) the probability that a from will pass given that it will subsequently survive is 85% . Given the above, what is the p( pass test or no survivor)?
Solution
From given information the p is pass test .
