I. BackgroundII. ObjectivesIII. AssumptionsIV. Basic ProbabilitiesV. Conditional ProbabilitiesVI. Bayes’ TheoremVII. RecommendationVIII. Further AnalysisIX. ConclusionBusiness Mathematics IProject 1: Loan ProjectFinal ReportPrepared forName of instructor Math 115a, Section University of Arizona ByTeam #Submitted onDateTable of ContentsWe, the undersigned, affirm that all of us participated fully and equally in the completion of this assignment and that the work contained herein is original. Furthermore, we understand that sanctions will be imposed individually as well as jointly if any part of this work is found to violate the Student Code of Conduct, the Code of Academic Integrity, or the policies and procedures established for this course. ______________________________ ______________________________Name (typed) Signature______________________________ ______________________________Name (typed) Signature______________________________ ______________________________Name (typed) Signature______________________________ ______________________________Name (typed) Signature______________________________ ______________________________Name (typed) SignatureI. BackgroundLoan Borrower EconomyFullAmountForeclosureValueDefaultValueYears ofExperience EducationCurrentConditionsII. ObjectivesIII. AssumptionsIV. Basic ProbabilitiesA. Definitions of S, F, and XB. ResultsCounting Estimated ProbabilitiesNumber ofSuccessesNumber ofFailures P(S) P(F)C. Computation and Interpretation of Estimated Expected Value of WorkoutV. Conditional ProbabilitiesD. BR Bank1. Definitions of Y and YZ2. FunctionFormer BankYears InBusinessEducationLevelState OfEconomyLoan PaidBack?13. Formulas and ResultsNumberSuccessfulNumberSuccessfulWith YNumberFailedNumberFailed WithYNumber WithY)|(BRBRYSP)|(BRBRYFP)|(BRBRSYP)|(BRBRFYP4. Computation and Interpretation of Estimated Expected Value of WorkoutE. Cajun Bank1. Definitions of T and TZ2. Formulas and ResultsNumberSuccessfulNumberSuccessfulWith TNumberFailedNumberFailed WithTNumber WithT)|(CJCJTSP)|(CJCJTFP2)|(CJCJSTP)|(CJCJFTP3. Computation and Interpretation of Estimated Expected Value of WorkoutF. DuPont Bank1. Definitions of C and CZ2. Formulas and ResultsNumberSuccessfulNumberSuccessfulWith CNumberFailedNumberFailed WithCNumber WithC)|(DPDPCSP)|(DPDPCFP)|(DPDPSCP)|(DPDPFCP3. Computation and Interpretation of Estimated Expected Value of WorkoutG. Acadia Bank)|( SCTYP )|( FCTYP VI. Bayes’ TheoremH. Computation and Interpretation of Probabilities)|( CTYSP )|( CTYFP I. Definitions of Z, Z, and Z3J. Computation and Interpretation of Estimated Expected Values)(ZE)(ZE)(ZEVII. RecommendationVIII. Further AnalysisIX.
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