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An analyst estimates that the probability of default on a seven-year AA-rated bond is 0.50, while that on a seven-year A-rated bond is 0.50. The probability that they will both default is 0.27.
Round answers to 2 decimal places.
1. What is the probability that at least one of the bonds defaults?
2. What is the probability that neither the seven-year AA-rated bond nor the seven-year A-rated bond defaults?
3. Given that the seven-year AA-rated bond defaults, what is the probability that the seven-year A-rated bond also defaults?
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question random sampling from two normal populations produced the following resultsx1
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