An insurance company divides its customers into three classes R1, R2 and R3 : good risks, medium risks, and bad risks, respectively. The numbers of these three classes represent 20% of the total population for the class R1, 50% for the class R2 and 30% for the class R3. Statistics indicate that the probabilities of having an accident during the year for a person in one of these three classes are respectively 0.05, 0.15 and 0.30. 1) What is the probability that a randomly selected person from the population has an accident during the year? 2) If Mr. Martin has not had an accident this year, what is the likelihood that he is a good risk?
An insurance company divides its customers into three classes R1, R2 and R3 : good risks, medium risks, and bad risks, respectively. The numbers of these three classes represent 20% of the total population for the class R1, 50% for the class R2 and 30% for the class R3. Statistics indicate that the probabilities of having an accident during the year for a person in one of these three classes are respectively 0.05, 0.15 and 0.30. 1) What is the probability that a randomly selected person from the population has an accident during the year? 2) If Mr. Martin has not had an accident this year, what is the likelihood that he is a good risk?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
An insurance company divides its customers into three classes
R1, R2 and R3 : good risks, medium risks, and bad risks, respectively. The
numbers of these three classes represent 20% of the total population for the class R1, 50% for the class R2 and 30% for the class R3. Statistics indicate that the probabilities of having an accident during the year for a person in one of these three classes are respectively 0.05, 0.15 and 0.30.
1) What is the probability that a randomly selected person from the population has an accident during the year?
2) If Mr. Martin has not had an accident this year, what is the likelihood
that he is a good risk?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
