Calculate the probability that a randomly chosen policy holder from this portfolio will make a claim during a 12 month period. One of the company’s policyholders has just made a claim (ii) Calculate the probability that the policy holder is younger than 22 years.

Calculate the probability that a randomly chosen policy holder from this portfolio will make a claim during a 12 month period. One of the company’s policyholders has just made a claim (ii) Calculate the probability that the policy holder is younger than 22 years.

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...

See similar textbooks

Similar questions

A company prices its tornado insurance using the following assumptions: • In any calendar year, there can be at most one tornado. • In any calendar year, the probability of a tornado is 0.01. • The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year. Using the company's assumptions, calculate the probability that there are fewer than 4 tornadoes in a 21-year period.
C. An insurance company calculates car insurance company calculates car insurance premiums based on the age of the policyholder according to three age groups: Group A consists of drivers younger than 22 years old; Group B consists of drivers 22-33 years old, and Group C consists of drivers older than 33 years. Its portfolio consists of 10% Group A policyholders, 38% Group B policyholders and 52% Group C policyholders. The probability of a claim in any 12 month period for a policy belonging to Group A, B or C is 13%, 3% and 2%, respectively. (i) Calculate the probability that a randomly chosen policy holder from this portfolio will make a claim during a 12 month period. One of the company's policyholders has just made a claim (ii) Calculate the probability that the policy holder is younger than 22 years.
An insurance policy costs $120 and will pay policyholders $9,000 if they suffer a major injury (resulting in hospitalization) or $3000 if they suffer a minor injury (resulting in lost time from work). The company estimates that 1 in every 2088 policyholders will suffer a major injury and that 1 in 504 will suffer a minor injury. a) Create a probability model for the profit on a policy. b) What's the company's expected profit on the policy? c) What's the standard deviation? a) First find the probability and profit for each outcome. P(event) Profit no injury major injury minor injury (Round to six decimal places as needed.)
A company prices its tornado insurance using the following assumptions:• In any calendar year, there can be at most one tornado.• In any calendar year, the probability of a tornado is 0.05.• The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.Using the company's assumptions, calculate the probability that there are fewer than 4 tornadoes in a 20-year period.
Assume that there is a 4% rate of disk drive failure in a year. a. If all your computer data is stored on a hard disk drive with a copy stored on a second hard disk drive, what is the probability that during a year, you can avoid catastrophe with at least one working drive? b. If copies of all your computer data are stored on three independent hard disk drives, what is the probability that during a year, you can avoid catastrophe with at least one working drive? a. With two hard disk drives, the probability that catastrophe can be avoided is (Round to four decimal places as needed.) b. With three hard disk drives, the probability that catastrophe can be avoided is (Round to six decimal places as needed.)
A company prices its tornado insurance using the following assumptions:• In any calendar year, there can be at most one tornado.• In any calendar year, the probability of a tornado is 0.08.• The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.Using the company's assumptions, calculate the probability that there are fewer than 4 tornadoes in a 22-year period.
In a population of 10,000, there are 5000 nonsmokers, 2500 smokers of one pack or less per day, and 2500 smokers of more than one pack per day. During any month, there is a 5% probability that a nonsmoker will begin smoking a pack or less per day, and a 4% probability that a nonsmoker will begin smoking more than a pack per day. For smokers who smoke a pack or less per day, there is a 10% probability of quitting and a 10% probability of increasing to more than a pack per day. For smokers who smoke more than a pack per day, there is a 9% probability of quitting and a 10% probability of dropping to a pack or less per day. How many people will be in each group in 1 month, in 2 months, and in 1 year? (Round your answers to the nearest whole number.)(a) in 1 month:nonsmokers:1 pack/day or less:more than 1 pack/day:(b) in 2 months:nonsmokers:1 pack/day or less:more than 1 pack/day:(c) in 1 year:nonsmokers:1 pack/day or less:more than 1 pack/day:
A company prices its tornado insurance using the following assumptions: • In any calendar year, there can be at most one tornado. • In any calendar year, the probability of a tornado is 0.07. • The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year. Using the company's assumptions, calculate the probability that there are fewer than 2 tornadoes in 15-year
XYZ Insurer has economic capital of $150,00. It has just collected $450,000 in premiums and projects total loss obligations (liabilities) according to the following table. Projected Total Losses $200,000 S300,000 $400,000 $500,000 S600,000 S700,000 SS00,000 $900.000 Probability of Total Losses 10 20 35 20 10 .03 015 005 What is the probability that XYZ Insurer will not have enough assets and capital to meet its loss obligations? 3% 5% 01:49
1. Researchers are interested in the relationship between vaping and upper respiratory infections. Suppose that 15% of their population of interest has vaped in the past year and 25% have had an upper respiratory infection in the past year. In addition, they know that 10% have both vaped and had an upper respiratory infection in the past year. What percent of the population has neither vaped nor had an upper respiratory infection in the past year? b. What is the probability of having an upper respiratory infection in the past year given that the person has vaped in the past year? What is the complement of the event in part b)? Be sure to interpret this probability in the context of the problem. a. C. d. What is the probability of having an upper respiratory infection in the past year given that the person has not vaped in the past year? Are the two events independent? Be sure to justify your answer. Based on your calculations what can you conclude about the relationship between vaping…
A company prices its tornado insurance using the following assumptions:• In any calendar year, there can be at most one tornado.• In any calendar year, the probability of a tornado is 0.08.• The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.Using the company's assumptions, calculate the probability that there are fewer than 4 tornadoes in a 21-year period.
C. An insurance company calculates car insurance company calculates car insurance premiums based on the age of the policyholder according to three age groups: Group A consists of drivers younger than 22 years old; Group B consists of drivers 22-33 years old, and Group C consists of drivers older than 33 years. Its portfolio consists of 10% Group A policyholders, 38% Group B policyholders and 52% Group C policyholders. The probability of a claim in any 12 month period for a policy belonging to Group A, B or C is 13%, 3% and 2%, respectively. (i) Calculate the probability that a randomly chosen policy holder from this portfolio will make a claim during a 12 month period. One of the company's policyholders has just made a claim (ii) Calculate the probability that the policy holder is younger than 22 years.