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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A law professor observed that only 20% of the students who get admitted to the freshmen class usually reached fourth year. Assuming that this is correct, find the probability that among 15 randomly selected first year students, exactly 3 students will reach fourth year?
A broker has a bonus scheme to encourage profitable trading. Under the rules of the scheme, any trader who drops below his daily target more than three times in a two-week period (10 working days) will forfeit his bonus at the end of the period. If the probability that an employee will be below target on any one day is 0.15, how many bonuses will be lost by 100 traders in a 50-week year? (Assumptions of independence are valid here). а. 50 b. 10 С. 125 d. 100
Suppose that the probability that any stock increases in price (over a 3 month period of time) is 60%. What is the probability that in a sample of 145 stocks that you buy that less than 55% increase in price (over a 3 month period of time)? (please round your answer to 4 decimal places)
How would you explain the EXPECTED VALUE in gambling, buying an insurance or in our daily life? Please bring an example. Thank you!
An 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 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.
Determine all joint probabilities listed below from the following information: SP(A)=0.7, P\left(A^{c}\right)=0.3, P(B \mid A)=0.37, P\left(B \mid A^{c}\right)=0.74$ $P(A$ and $B)=$ SP\left(A\right.$ and $\left.B^{c}\right)=$ SP\left(A^{c}\right.$ and $\left.B\right)=$ SP\left(A^{c}\right.$ and $\left.B^{c}\right)=$ SP.PC.066|
The graph of the discrete probability to the right represents the number of live births by a mother 49 to 53 years old who had a live birth in 2015. Complete parts (a) through (d) below. 0 1 (a) What is the probability that a randomly selected 49- to 53-year-old mother who had a live birth in 2015 has had her fourth live birth in that year? (Type an integer or a decimal.) (b) What is the probability that a randomly selected 49- to 53-year-old mother who had a live birth in 2015 has had her fourth or fifth live birth in that year? (Type an integer or a decimal.) (c) What is the probability that a randomly selected 49- to 53-year-old mother who had a live birth in 2015 has had her sixth or more live birth in that year? (Type an integer or a decimal.) Statcrunch no JL @ 1 # с $ % JI JU & 0.30 0.25 0.20 0.15 0.10 0.05- 0.00 U 165 0.112 0.094 Number of Live Births 7 R # 8 A G
In a Poisson process with rate parameter A, the expression 14 - e (1+1 + +· 2! 14! equals the probability of at least hits during an interval for which A is the expected value of the number of hits.
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.
2. If an insurance company issues a $200,000 five-year policy on a man whose probability of living for another five years is .994, what is the minimum that the expected cost to the company for this policy?
Explain underwriting risk and discuss two risks faced by insurance companies.

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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.