classes good risks, average risks, and bad risks. Their records indicate that the probabilities that good, average, and bad risk persons will be involved in an accident over a 1-year span are, respectively, .05, .15, and .30. If 20 percent of the population are “good risks,” 50 percent are “average risks,” and 30 percent are “bad risks,” what proportion of people have accidents in a fixed year? If policy holder A had no accidents in 1987, what is the probability that he or she is a good (average) risk?
classes good risks, average risks, and bad risks. Their records indicate that the probabilities that good, average, and bad risk persons will be involved in an accident over a 1-year span are, respectively, .05, .15, and .30. If 20 percent of the population are “good risks,” 50 percent are “average risks,” and 30 percent are “bad risks,” what proportion of people have accidents in a fixed year? If policy holder A had no accidents in 1987, what is the probability that he or she is a good (average) risk?
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.2: Introduction To Probability
Problem 52E
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4. Suppose that an insurance company classifies people into one of three
classes good risks, average risks, and bad risks. Their records indicate that the probabilities that good, average, and bad risk persons will be involved in an accident over a 1-year span are, respectively, .05, .15,
and .30. If 20 percent of the population are “good risks,” 50 percent
are “average risks,” and 30 percent are “bad risks,” what proportion of
people have accidents in a fixed year? If policy holder A had no accidents in 1987, what is the probability that he or she is a good (average) risk?
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