When acting on loan applications it can be concluded, based on historical records, that loan applicants having certain combinations of features can be expected to repay their loans and those who have other combinations of features cannot. As their main features, suppose that a bank uses:
Marital Status: Married, Single (never married), Single (previously married).
Past Loan: Previous default, No Previous default
Employment: Employed, Unemployed (within 1 year), Unemployed (more than 1 year).
(a) How many different loan applications are possible when considering these features?
(b) How many manifestations of loan repayment/default are possible when considering these features?
For part a, it seems plain to me that it's the product rule and is 3 * 2 * 3 = 18. But I'm confused about the wording in (b) - what are manifestations , and how do I approach this part? I appreciate any tips or advice.