An insurance company believes that drivers can be divided into two classes, those that are of high risk and those that are of low risk. Their statistics show that a high-risk driver will have an accident at some time within a year with probability 0.4, but this probability is only 0.1 for low-risk drivers. Assume 20% of the drivers are high-risk. If a new policy holder does not have any accident within a year of purchasing a policy, what is the probability that he is a low-risk type driver? (round your answer to 3 decimal places) O 0.857 O 0.500 O 0.160 O 0.143

Q: A leading large college recently reported that 40.5% of its student body had concerns about the…

A:

Q: An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong,…

A:

Q: An investment counselor calls with a hot stock tip. He believes that if the economy remains strong,…

A: From the provided information, Profit when economy remains strong = $60,000 Profit when economy grow…

Q: costs and improve profits, any US companies have been turning to ou rcing. In fact, according to…

A: Solution: Given information:  n= 555 Sample size p= 0.54 Population proportion.

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A: From the given information, The mean customer satisfaction rate is 7.5. The standard deviation for…

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A: Random variables are of 2 types, discrete and continuous. A discrete random variable can only take…

Q: In many settings, the "rules of probability" are just basic facts about percents. The Graduate…

A: a) It is given that, P( Business or commerce) = 0.56, P(Engineering) = 0.15, P(social sciences) =…

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A: Let X be a discrete random variable. They can take any values,x1,x2...........xn, with probability…

Q: raveller bought travel insurance for a five day trip. The policy will pay a benefit 5000 for…

A: Binomial distribution has used to find out the expected benefit for this trip.

Q: male inhabitants. Using the first incidence rate (1 out of 4 000), calculate the probability that…

A: Here use poisson process

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A: Let X represent the random variable p=1-0.05=0.95   a) n=2   X~ Binomial (2, 0.95)

Q: 4) Suppose a company manufactures components for electronic devices. In the manufacturing process,…

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A: To find: The probability that a driver with at least one collision in the past year is a Teen…

Q: Assume that there is a 5% rate of disk drive failure in a year. a. If all your computer data is…

A: Given that the rate of disk drive failure in a year is 5%.

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A: Given  the investment will result in a profit of $30,000. If the economy grows at a moderate pace,…

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A: We know the term probability means the chance of occurrence. In probability we guess the possibility…

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Q: An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong,…

A:

Q: 3. Burger Prince Restaurant is considering the purchase of a $100,000 fire insurance policy. The…

A: If Burger Prince restaurant wants to buy fire policy at neutral risk, then they have to pay the…

Q: In the attatched image is a partially complete probability model. What is the probability for the…

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Q: Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest…

A: From the given information, the probability of surviving such a quest is 94.0% and the probability…

Q: Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest…

A: Formula :  Expected value = ∑xP(x)

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A: Given, the company offers the insurance plan for one time cost today of $75. the company will cover…

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Q: A marketing research survey shows that approximately 80 percent of the car owner surveyed indicated…

A: Probability of an event is chances of occurrence of the event. Probability of an event is computed…

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.