Solved: An automobile insurance company divides customers into three categories, good
Chapter 2, Problem 20(choose chapter or problem)
An automobile insurance company divides customers into three categories, good risks, medium risks, and poor risks. Assume that \(70 \%\) of the customers are good risks, \(20 \%\) are medium risks, and \(10 \%\) are poor risks. Assume that during the course of a year, a good risk customer has probability 0.005 of filing an accident claim, a medium risk customer has probability 0.01, and a poor risk customer has probability 0.025. A customer is chosen at random.
a. What is the probability that the customer is a good risk and has filed a claim?
b. What is the probability that the customer has filed a claim?
c. Given that the customer has filed a claim, what is the probability that the customer is a good risk?
Equation Transcription:
Text Transcription:
70%
20%
10%
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