C. An insurance company calculates car insurance company calculates carinsurance premiums based on the age of the policyholder according to three agegroups: Group A consists of drivers younger than 22 years old; Group B consistsof 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 policyholdersand 52% Group C policyholders.The probability of a claim in any 12 month period for a policy belonging to GroupA, B or C is 13%, 3% and 2%, respectively.(i) Calculate the probability that a randomly chosen policy holder from thisportfolio 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.

Let us define some events A : a policy holder is from group A. B : a policy holder is from group B.…

Answered: (i) Calculate the probability that a…

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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(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.