Mathematics, 15.02.2020 02:11 alanflores40
An insurance company believes that people can be divided into two classes: those who are accident prone and those who are not. The company's statistics show that an accident-prone person will have an accident at some time within a fixed 1-year period with probability 0.4, whereas this probability decreases to 0.2 for a person who is not accident prone.
1. If we assume that 30 percent of the population is accident prone, what is the probability that a new policyholder will have an accident within a year of purchasing a policy?
(a) 0.26
(b) 0.27
(c) 0.28
(d) 0.29
2. Given that a new policyholder has an accident within a year of purchasing a policy. What is the probability that she is accident prone?
(a) 4/13
(b) 5/13
(c) 6/13
(d) 7/13
Answers: 2
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An insurance company believes that people can be divided into two classes: those who are accident pr...
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