Small business loan

Question

The possibility that a bank with assets greater than or equal to $30 billion will make a loan to a small business is 0.002. What are the odds against such a bank making a small business loan?

Answer 1

probability = success / total outcomes.

odds = successes / failures

odds against = failures / successes

 

0.002 = 2 successes / 1000 outcomes

998 failures

 

odd against 998 / 2, 499 / 1