1.5-6. A life insurance company issues standard, preferred, and ultrapreferred policies. Of the company's policyholders of a certain age, 60% have standard policies and a probability of 0.01 of dying in the next year, 30% have preferred policies and a probability of 0.008 of dying in the next year, and 10% have ultrapreferred policies and a probability of 0.007 of dying in the next year. A policyholder of that age dies in the next year. What are the conditional probabilities of the deceased having had a standard, a preferred, and an ultrapreferred policy?
1.5-6. A life insurance company issues standard, preferred, and ultrapreferred policies. Of the company's policyholders of a certain age, 60% have standard policies and a probability of 0.01 of dying in the next year, 30% have preferred policies and a probability of 0.008 of dying in the next year, and 10% have ultrapreferred policies and a probability of 0.007 of dying in the next year. A policyholder of that age dies in the next year. What are the conditional probabilities of the deceased having had a standard, a preferred, and an ultrapreferred policy?
MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Problem 1P
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Transcribed Image Text:1.5-6. A life insurance company issues standard, preferred, and ultrapreferred policies.
Of the company's policyholders of a certain age, 60% have standard policies and a
probability of 0.01 of dying in the next year, 30% have preferred policies and a
probability of 0.008 of dying in the next year, and 10% have ultrapreferred policies and a
probability of 0.007 of dying in the next year. A policyholder of that age dies in the next
year. What are the conditional probabilities of the deceased having had a standard, a
preferred, and an ultrapreferred policy?
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Step 1: Define the given data.
VIEWStep 2: Obtain the conditional probability of the deceased having a standard policy
VIEWStep 3: Obtain the conditional probability of the deceased having a preferred policy
VIEWStep 4: Obtain the conditional probability of the deceased having a ultra preferred policy
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