1. For detemining the monthly premiums of their customers, an automobile insurance company classifies drivers into 3 classes: Good drivers (G), medium-level drivers (M) and bad drivers (B). The percentage of drivers in each class is as follows: Class G: 25%, Class M: 60%, Class B: 15%. The probabilities that a driver in each of these classes will have an accident in one year are given as follows: For Class G= 0.005, for Class M= 0.025, for Class B= 0.035 a) What is the probability that a driver has an accident within the first year? b) A driver purchasing an insurance policy has an accident within the first year. What is the probability that he/she was classified as a good driver (in Class G)?

1. For detemining the monthly premiums of their customers, an automobile insurance company classifies drivers into 3 classes: Good drivers (G), medium-level drivers (M) and bad drivers (B). The percentage of drivers in each class is as follows: Class G: 25%, Class M: 60%, Class B: 15%. The probabilities that a driver in each of these classes will have an accident in one year are given as follows: For Class G= 0.005, for Class M= 0.025, for Class B= 0.035 a) What is the probability that a driver has an accident within the first year? b) A driver purchasing an insurance policy has an accident within the first year. What is the probability that he/she was classified as a good driver (in Class G)?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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