An Analysis of Personal Loans at a Local Bank Revealed

Multiple Choice

An analysis of personal loans at a local bank revealed the following facts: 10% of all personal loans are in default (D) , 90% of all personal loans are not in default (D΄) , 20% of those in default are homeowners (H | D) , and 70% of those not in default are homeowners (H | D΄) .If a personal loan is selected at random, P (D | H) = ___________.

A) 0.03
B) 0.63
C) 0.02
D) 0.18
E) 0.78