An insurance company sells 40% of its renters policies to home renters and the remaining 60% to apartment renters. Among home renters, the time from policy purchase until policy cancellation has an exponential distribution with mean 4 years, and among apartment renters, it has an exponential distribution with mean 2 years. Calculate the probability that the policyholder is a home renter, given that a renter still has a policy one year after purchase. (A) 0.08 (B) 0.27 (C) 0.46 (D) 0.56 (E) 0.66
An insurance company sells 40% of its renters policies to home renters and the remaining 60% to apartment renters. Among home renters, the time from policy purchase until policy cancellation has an exponential distribution with mean 4 years, and among apartment renters, it has an exponential distribution with mean 2 years. Calculate the probability that the policyholder is a home renter, given that a renter still has a policy one year after purchase. (A) 0.08 (B) 0.27 (C) 0.46 (D) 0.56 (E) 0.66
Chapter9: Sequences, Probability And Counting Theory
Section9.7: Probability
Problem 1SE: What term is used to express the likelihood of an event occurring? Are there restrictions on its...
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An insurance company sells 40% of its renters policies to home renters and the remaining 60% to apartment renters. Among home renters, the time from policy purchase until policy cancellation has an exponential distribution with mean 4 years, and among apartment renters, it has an exponential distribution with mean 2 years.
Calculate the probability that the policyholder is a home renter, given that a renter still has a policy one year after purchase.
(A) 0.08
(B) 0.27
(C) 0.46
(D) 0.56
(E) 0.66
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