A financial analyst claims to be able to spot companies that are likely candidates for bankruptcy. The analyst is presented with information on the past records of 15 companies and is told that 5 of these have failed. He selects as candidates for failure 5 companies from the group of 15. In fact, 3 of the 5 companies selected by the analyst where among those that failed. Evaluate the fiancial analyst performance on this test of his ability to detect failed companies.
I am giving in..