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(a) What is the probability that a new customer has an accident over the first year of his contract? (b) A new customer has an accident during the first year of his contract. What is the probability that he belongs to the group likely to have an accident?

(a) What is the probability that a new customer has an accident over the first year of his contract? (b) A new customer has an accident during the first year of his contract. What is the probability that he belongs to the group likely to have an accident?

College Algebra
College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 50E: Flexible Work Hours In a recent survey, people were asked whether they would prefer to work flexible...
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Q3/ An insurance company considers that people can be split in two groups : those who are likely to have accidents and those who are not. Statisties show that a person who is likely to have an accident has probability 0.4 to have one over a year; this probability is only 0.2 for a person who is not likely to have an accident. We assume that 30% of the population is likely to have an accident. (a) What is the probability that a new customer has an accident over the first year of his contract? (b) A new customer has an accident during the first year of his contract. What is the probability that he belongs to the group likely to have an accident? Ans: (a- 0.26, b- 0.46)
Transcribed Image Text:Q3/ An insurance company considers that people can be split in two groups : those who are likely to have accidents and those who are not. Statisties show that a person who is likely to have an accident has probability 0.4 to have one over a year; this probability is only 0.2 for a person who is not likely to have an accident. We assume that 30% of the population is likely to have an accident. (a) What is the probability that a new customer has an accident over the first year of his contract? (b) A new customer has an accident during the first year of his contract. What is the probability that he belongs to the group likely to have an accident? Ans: (a- 0.26, b- 0.46)
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