Q.5 Martin Coleman, credit manager for Beck’s, knows that the company uses three methods to encourage collection of delinquent accounts. From past collection records, He learns that 70 percent of the...


Q.5 Martin Coleman, credit manager for Beck’s, knows that the company uses three methods to encourage
collection of delinquent accounts. From past collection records, He learns that 70 percent of the accounts
are called on personally,20 percent are phoned, and 10 percent are sent a letter. The probabilities of
collecting an overdue amount form an account with three methods are 0.75,0.60 and 0.65 respectively.Mr.
Coleman has just received a payment from a past due account. what is the probability that this account?


(a) Was called on personally?
(b) Received a phone call?
(c) Received a letter?




Jun 07, 2022
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