You are given these information regarding two groups of health insurance customers:Group A: 5% probability of claiming medical insurance to a total of $100,000Group B: 40% probability of claiming medical insurance to a total of $100,000Assume that there are 1000 individuals in each groupBased on the information given above, discuss the problem of adverse selection that occur betweenthe consumers and the health insurance companies.

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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 report describes a survey of 251 adult Americans. Participants in the survey were asked how often they disinfect their phone and were asked to respond with one of the following categories: more than once a week, once a week, every other, week, every three weeks, or less often than every three weeks. For this group, 9% responded more than once a week, 52% responded once a week, 26% responded every other week, 6% responded every three weeks, and 7% responded less often than every three weeks. Fill in the table below with the relative frequency distributions. How Often? Relative Frequency More than once a week Once a week Every other week Every three weeks Less often than every three weeks
Does the location of your seat in a classroom play a role in attendance or grade? 1600 students in a physics course were randomly assigned to one of four groups. The 400 students in group 1 sat 0 to 4 meters from the front of the class, the 400 students in group 2 sat 4 to 6.5 meters from the front, the 400 students in group 3 sat 6.5 to 9 meters from the front, and the 400 students in group 4 sat 9 to 12 meters from the front. Complete parts (a) through (c). Click the icon to view the chi-square table of critical values. (a) For the first half of the semester, the attendance for the whole class averaged 83%. So, if there is no effect due to seat location, we would expect 83% of students in each group to attend. The data show the attendance history for each group. How many students in each group attended, on average? Is there a significant difference among the groups in attendance patterns? 3 4 Group Attendance 1 0.84 0.84 0.84 0.80 The number of students who attended in the first…
The World Bank collects information on the life expectancy of a person in each country ("Life expectancy at," 2013) and the fertility rate per woman in the country ("Fertility rate," 2013). The data for 12 randomly selected countries for the year 2011 are shown in the table below. Table: Data of Fertility Rates versus Life Expectancy Fertility Rate Life Expectancy 1.7 77 5.8 55 2.2 70 2.1 76 1.8 75 2.0 78 2.6 73 1.5 81 6.9 54 2.9 72 4.7 63 6.8 57 The most commonly used type of correlation is Pearson correlation, named after Karl Pearson, introduced around the turn of the 20th century. Pearson's r measures the linear relationship between two variables, say X and Y. Find the Pearson’s correlation coefficient for the above data In reference to the calculated correlation coefficient above, describe the strength of the correlation. Briefly give an explanation to meaning of the above results. Obtain the…
Approximately 8% of males experience red-green color blindness. Suppose a random sample of 200 men is chosen.
Each person in a representative sample of 449 college students age 18 to 24 was classified according to age and to the response to the following question: "How often have you used a credit card to buy items knowing you wouldn't have money to pay the bill when it arrived?" Possible responses were never, rarely, sometimes, or frequently. The responses are summarized in the table. Age 18 to 20 Age 21 to 22 Age 23 to 24 Never 73 62 29 Rarely 38 34 32 Sometimes 30 42 40 Frequently 13 24 A USE SALT Do these data provide evidence that there is an association between age group and the response to the question? Test the relevant hypotheses using a = 0.01. State the appropriate null and alternative hypotheses. O H: The proportions falling into each of the three age groups are not the same for all four responses to the question. H: The proportions falling into each of the three age groups are the same for all four responses to the question. O Hg: The proportions falling into each of the three age…
Human blood is classified by the presence or absence of three main antigens (A, B, and Rh). When a blood specimen is typed, the presence of the A and/or B antigen is indicated by listing the letter A and/or the letter B. If neither the A nor the B antigen is present, the letter O is used.The following table gives the percent of a country's population having each of the eight possible blood types in the sample space. Note that the presence or absence of the Rh antigen is indicated by the symbols + or −, respectively. Blood Types A+ A− B+ B− AB+ AB− O+ O− Percent 35.7 6.1 8.5 1.5 3.4 0.8 37.4 6.6 (a) What is the probability that a person selected at random from the population has a blood type that is type AB given that the person is Rh+? (Round your answer to two decimal places.)(b) What is the probability that a person selected at random from the population has a blood type that is Rh− given that the person is type O? (Round your answer to two decimal places.)
Below are the numbers of patients classified as underweight, normal weight, overweight and obese according to their diabetes status. If a patient is selected at random: What proportion of normal weight patients are not diabetic? What proportion of patients are normal weight or underweight? Underweight Normal Weight Overweight Obese Row Totals Diabetic 8 34 65 43 150 Not Diabetic 12 85 93 40 230 Column Totals 20 119 158 83 380
Human blood is classified by the presence or absence of three main antigens (A, B, and Rh). When a blood specimen is typed, the presence of the A and/or B antigen is indicated by listing the letter A and/or the letter B. If neither the A nor the B antigen is present, the letter O is used.The following table gives the percent of a country's population having each of the eight possible blood types in the sample space. Note that the presence or absence of the Rh antigen is indicated by the symbols + or −, respectively. Blood Types A+ A− B+ B− AB+ AB− O+ O− Percent 35.9 6.3 9.5 2.5 3.2 0.8 37.4 4.4 (a) What is the probability that a person selected at random from the population has a blood type that is type A given that the person is Rh−? (Round your answer to two decimal places.)(b) What is the probability that a person selected at random from the population has a blood type that is Rh+ given that the person is type B? (Round your answer to two decimal places.)
Probability. Please assist me in these 2 short questions.
Human blood is classified by the presence or absence of three main antigens (A, B, and Rh). When a blood specimen is typed, the presence of the A and/or B antigen is indicated by listing the letter A and/or the letter B. If neither the A nor the B antigen is present, the letter O is used. The following table gives the percent of a country's population having each of the eight possible blood types in the sample space. Note that the presence or absence of the Rh antigen is indicated by the symbols + or -, respectively. 0 Blood Types Percent A+ A 6.3 35.7 B+ B 8.5 1.5 AB+ AB 3.4 0.8 0+ 37.2 (a) What is the probability that a person selected at random from the population has a blood type that is type A given that the person is Rh? (Round your answer to two decimal places.) 6.6 (b) What is the probability that a person selected at random from the population has a blood type that is Rh* given that the person is type B? (Round your answer to two decimal places.)
A random survey of health issues, conducted by the Department of Public Health of the Commonwealth of Massachusetts, examined the results from the state's seven largest cities. These cities were selected on the basis of their diverse racial and ethnic populations. The percentage of adults with diabetes in each city in the survey is given in the following table. City Boston Worcester Springfield Lowell Fall River Lawrence NewBedford Adults withDiabetes (%) 4.2 5.2 9.1 5.7 8.1 7.9 6.3 Find the average percentage of adults with diabetes in these seven cities. (Round your answer to two decimal places.) %What is the standard deviation for these data? (Round your answer to two decimal places.) %
Human blood is classified by the presence or absence of three main antigens (A, B, and Rh). When a blood specimen is typed, the presence of the A and/or B antigen is indicated by listing the letter A and/or the letter B. If neither the A nor the B antigen is present, the letter O is used.The following table gives the percent of a country's population having each of the eight possible blood types in the sample space. Note that the presence or absence of the Rh antigen is indicated by the symbols + or −, respectively. Blood Types A+ A− B+ B− AB+ AB− O+ O− Percent 35.7 6.1 9.5 1.5 3.4 0.8 37.4 5.6 (a) What is the probability that a person selected at random from the population has a blood type that is type A given that the person is Rh−? (Round your answer to two decimal places.)(b) What is the probability that a person selected at random from the population has a blood type that is Rh+ given that the person is type B? (Round your answer to two decimal places.)

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