SOLVED: An auditing model correctly predicted bankruptcy of 90% of firms that actually failed and correctly predicted non-bankruptcy of 80% of firms that did not fail. Additionally, historical data shows that 30% of firms for which the model made its prediction did fail in the last year.a/ Find the probability that the model will predict bankruptcy for a firm.b/ Find the probability that a firm will go bankrupt, given that the model has predicted it will do so.
SOLVED: An auditing model correctly predicted bankruptcy of …
Oct 22, 2021
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an auditing model correctly predicted bankruptcy of 90 of firms that in fact did fail and correctly predicted non bankruptcy of 80 of firms that did not fail besides the historical data show 83348
an auditing model correctly predicted bankruptcy of 90 of firm…
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