Defaulting on a loan means failing to pay it back on time

Last updated: 12/19/2022

Defaulting on a loan means failing to pay it back on time The default rate among NYU students on their student loans is 1 As a project you develop a test to predict which students will default Your test is good but not perfect It gives 4 false positives i e prediciting a student will default who in fact will not If has a 0 false negative rate i e prediciting a student won t default who in fact will 10 a Suppose a random student tests positive What is the probability that he will truly default