Solution Found!

Mathematical Statistics with Applications | 7th Edition | ISBN: 9780495110811 | Authors: Dennis Wackerly; William Mendenhall; Richard L. Scheaffer
Change Question

For simplicity, let us assume that there are two kinds of

Chapter 3, Problem 214SE

(choose chapter or problem)

Get Unlimited Answers
QUESTION:

Problem 214SE

For simplicity, let us assume that there are two kinds of drivers. The safe drivers, who are 70% of the population, have probability .1 of causing an accident in a year. The rest of the population are accident makers, who have probability .5 of causing an accident in a year. The insurance premium is $400 times one’s probability of causing an accident in the following year. A new subscriber has an accident during the first year. What should be his insurance premium for the next year?

Questions & Answers

QUESTION:

Problem 214SE

For simplicity, let us assume that there are two kinds of drivers. The safe drivers, who are 70% of the population, have probability .1 of causing an accident in a year. The rest of the population are accident makers, who have probability .5 of causing an accident in a year. The insurance premium is $400 times one’s probability of causing an accident in the following year. A new subscriber has an accident during the first year. What should be his insurance premium for the next year?

ANSWER:

Solution

Step 1 of 1

We have to find the insurance premium

There are 2 kinds of drivers

Safe drivers who are 70% with probability 0.1

Others 30% with probability 0.5

Insurance premium is 400 $

Let S be the event that safe driving

Let A be the event that accident

Now P(S)=0.7

Add to cart

Study Tools You Might Need

Chapter: 10 Problem: 32P

Introductory Chemistry 5
Write the Lewis structure for each ion. (a) \(S r^{2+}\) (b) \(S^{2-}\) (c) \(L i^{+}\) (d) \(C l^{-}\) Equation Transcription: Text Transcription: Sr^2+ S^2- Li^+ Cl^-

Chapter: 14 Problem: 5

College Physics 1
Problem 5PE Rubbing your hands together warms them by converting work into thermal energy. If a woman rubs her hands back and forth for a total of 20 rubs, at a distance of 7.50 cm per rub, and with an average frictional force of 40.0 N, what is the temperature increase? The mass of tissues warmed

Chapter: 30 Problem: 30.58

Sears and Zemansky's University Physics with Modern Physics 13
Problem 58P An L-C circuit consists of a 60.0-mH inductor and a 250-?F capacitor. The initial charge on the capacitor is 6.00 ?C, and the initial current in the inductor is zero. (a) What is the maximum voltage across the capacitor? (b) What is the maximum current in the inductor? (c) What is the m

Chapter: Problem: 13

Myers' Psychology for AP 2
Self-reflective introspection about the elements of experience best describes a technique used by which school of psychology? a. Darwinists b. Empiricists c. Structuralists d. Behaviorists e. Psychiatrists

Chapter: 9 Problem: 9.4

Campbell Biology 9
During the redox reaction in glycolysis (step 6 in Figure 9.9), which molecule acts as the oxidizing agent? The reducing agent?

Chapter: 4 Problem: 2

Campbell Biology 10
Which functional group is not present in this molecule? a. carboxyl b. sulfhydryl c. hydroxyl d. amino

Chapter: 29 Problem: 6

Principles of Economics 6
The Federal Reserve conducts a $10 million open-market purchase of government bonds. If the required reserve ratio is 10 percent, what is the largest possible increase in the money supply that could result? Explain. What is the smallest possible increase? Explain.

Chapter: 16 Problem: 20

Concepts of Biology 1
Among other bones, the axial skeleton includes the ________. a. thoracic cage and vertebral column b. thoracic cage and pectoral girdle c. skull and pelvic girdle d. pectoral and pelvic girdles

Not The Solution You Need? Search for Your Answer Here:

×

Login

Login or Sign up for access to all of our study tools and educational content!

Forgot password?
Register Now

×

Register

Sign up for access to all content on our site!

Or login if you already have an account

×

Reset password

If you have an active account we’ll send you an e-mail for password recovery

Or login if you have your password back