問題詳情
A municipal bond service has three rating categories (A, B, and C). Suppose thatin the past year, of the municipal bonds issued throughout the United States, 70%were rated A, 20% were rated B, and 10% were rated C. Of the municipal bondsrated A, 50% were issued by cities, 40% by suburbs, and 10% by rural areas. Ofthe municipal bonds rated B, 60% were issued by cities, 20% by suburbs, and20% by rural arcas. Of the municipal bonds rated C, 90% were issued by cities,5% by suburbs, and 5% by rural areas. If a new municipal bond is to be issued bya city, what is the probability that it will receive an A rating?
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