Researchers have developed models based on financial ratios…

Researchers have developed models based on financial ratios that predict whether a company will go bankrupt over the next 12 months.  In a test of the model, the model correctly predicted bankruptcy of firms that did fail 85% of the time.  If also correctly predicted non-bankruptcy for 75% of firms that didn’t fail. Suppose we assume 8% of all firms will go bankrupt this year. Your firm was just predicted to go bankrupt :(.  What is the probability it actually will go bankrupt?   Report your answer to 3 decimal places

A family is considering a move from a Columbus to Los Angele…

A family is considering a move from a Columbus to Los Angeles.  The distribution of housing costs in Columbus are normally distributed with a mean of $105,000 and an sd of $18,200.  The distribution of housing costs in LA are normally distributed with mean $235,000 and sd $30,400. The family’s current home is valued at $110,000. What percentage of houses in Columbus cost less than their house? (Be careful when typing in the correct number of 0’s)    Report your answer as a decimal to 4 decimal places.