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(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.

(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.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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.
Transcribed Image Text: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.
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