8. Assume that an insurance company knows the following probabilities relating to automobileaccidents (where the second column refers to the probability that the policyholder has at leastone accident during the annual policy period):Age of Driver16 - 2526 - 5051 - 6566 - 90Probability of Accident0.050.020.030.04Fraction of Company'sInsured Drivers0.100.550.200.15A randomly selected driver from the company's insured drivers has an accident. What is theconditional probability that the driver is in the 16-25 age group?

Age of driver probability of accidentFraction of company 's Insured Drivers…

Answered: 8. Assume that an insurance company…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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20.20 Life insurance. You might sell insurance to a 20-year-old friend. The probability that a man aged 20 will die in the next year is about 0.0007. You decide to charge $2000 for a policy that will pay $1 million if your friend dies. a. What is your expected profit on this policy? b. Although you expect to make a good profit, you would be foolish to sell a single policy only to your friend. Why? c. A life insurance company that sells thousands of policies, on the other hand, would do very well selling policies on exactly these same terms. Explain why
Find the probability of an event E if the odds for E is equal to the odds against
If the prevalence of a certain condition in the population is 0.1. What is the probability that at least one person out of sample of ten has the condition? Write as a proportion rounded to two places.
1.A husband and wife take out an insurance policy for a 20 year term. It is estimated the probability of being alive in 20 years time is 0.8 for the husband, and 0.9 for the wife. What is the probability that in 20 years time, just one of them will be alive. Explain your reasoning carefully.
Richies insurance company offers a 250,000 life insurance policy for a premium of $750 per year. If the probability you live through the year is .9977 what is the expected value to the insurance company
11. Find the probability of the indicated event if P(E) = 0.20 and P(F)= 0.35. Find P(E and F) if P(E or F)= 0.30 P(E and F) = (Simplify your answer.)
es The Internal Revenue Service is studying the category of charitable contributions. A sample of 25 returns is selected from young couples between the ages of 20 and 35 who had an adjusted gross income of more than $100,000. Of these 25 returns, five had charitable contributions of more than $1,000. Four of these returns are selected for a comprehensive audit. a. The hypergeometric distribution is appropriate because it is Osampling a small population without replacement. O sampling a small population with replacement. O sampling a large population without replacement. b. What is the probability exactly one of the four audited had a charitable deduction of more than $1,000? (Round your answer to 4 decimal places.) Probability
Suppose the probability of an IRS audit is 4.0 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more. ( (b) What are the odds against such a taxpayer being audited? (Round your answers to the nearest whole number.)
Suppose that 51% of the people who inquire about investments at a certain brokerage firm end up investing in stocks, 41% end up investing in bonds, and 61% end up investing in stocks or bonds (or both). What is the probability that a person who inquires about investments at this firm will invest in both stocks and bonds? Write your answer as a decimal (not as a percentage).
Enunciate demerits of classical probability.
Consider records of a company’s account balances. Twenty percent contain errors. Of those balance in errors, 80% are regarded as unusual values based on historical figures. Of all the account balances, 25% were unusual values. If the figure for a particular balance appears unusual on this basis, what is the probability that it is in error?

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