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...

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Question

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.

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