Mathematics, 08.10.2019 05:30 hosfordkenya4
Suppose that an insurance company classifies people into one of three classes —good risks, average risks, and bad risks. their records indicate that the probabilitiesthat good, average, and bad risk persons will be involved in an accident over a1-year span are, respectively, .05, .15, and .30.
a. if 20 percent of the populationare "good risks," 50 percent are "average risks," and 30 percent are "bad risks,"what proportion of people have accidents in a fixed year?
b. if policy holder a hadno accidents in 1987, what is the probability that he or she is a good (average)risk?
Answers: 1
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