An accounting firm serves many companies (clients). Each client submits an annual financial report to the firm for auditing. The report may be fraudulent (denoted by class 1 or C1) or may be truthful...

Extracted text: An accounting firm serves many companies (clients). Each client submits an annual financial report to the firm for auditing. The report may be fraudulent (denoted by class 1 or C1) or may be truthful (denoted by class 2 or C2). Each client may or may not have legal trouble before (denoted by x1) and may be of either small or large capital size (denoted by x2). Please compute the propensity of a new client submitting fraudulent report using the pivot tables below. Prior Legal (x1 = 1) No Prior Legal Total (x1 = 0) Fraudulent 55 65 120 (C1) Truthful (C2) 200 680 880 Total 255 745 1000 Small (x2 = 1) Large (x2 = 0) Total Fraudulent (C1) 100 20 120 Truthful (C2) 100 780 880 Total 200 800 1000 Round your answers to 3 digits after the decimal point. P(x1 = 1| C1) = P(x1 = 0|C1) = P(x2 = 1 |C1) = P(x2 = 0| C1) =


Extracted text: P(x2 = 0|C1) = P(x1 = 1| C2) = P(x1 = 0| C2) = P(x2 = 1| C2) = P(x2 = 0| C2) = %3D P(C1) = P(C2) = Given a new client with legal trouble before (x1 = 1) with small size (x2 1), what is the propensity of this client submitting a fraudulent report? P(C1 | x1 = 1, x2 = 1) = Given a new client with legal trouble before (x1 = 1) with small size (x2 %3D 1), what is the propensity of this client submitting a truthful report? P(C2 | x1 = 1, x2 = 1) = Given a new client with no legal trouble before (x1 = 0) and large size (x2 = 0), what is the propensity of this client submitting a fraudulent %3D report? P(C1 | x1 = 0, x2 = 0) =