An insurance company believes that people can be divided into two classes: those who are accident prone and those who are not. The company's statistics show that an accident-prone person will have an accident at some time within a fixed 1-year period with probability 0.4, whereas this probability decreases to 0.2 for a person who is not accident prone.

1. If we assume that 30 percent of the population is accident prone, what is the probability that a new policyholder will have an accident within a year of purchasing a policy?

(a) 0.26

(b) 0.27

(c) 0.28

(d) 0.29

2. Given that a new policyholder has an accident within a year of purchasing a policy. What is the probability that she is accident prone?

(a) 4/13

(b) 5/13

(c) 6/13

(d) 7/13

Step-by-step explanation:

From the given information we can consolidate the given particulars as follows:

People          Accident prone            Not accident prone

  100                     30                                    70

  Prob for

accident              0.4                                   0.2

Joint persons       12                                     14                  Total = 26

1) Probability for a new policy holder to have accident=

Prob he is accident prone and meets with accident + prob he is not accident prone but meets with accident

= 0.26

a is right

2) Given he has an accident

Prob she is accident prone = Prob accident prone and accident / 0.26

= 0.12/0.26 = 6/13

Option c

i dont know

step-by-step explanation:

the reason i dont know is because i have not taken this class and for that reason i haven't learned this stuff

hope i could

i think da answer is

d.square root of 3