In an insurance portfolio 10% of the policy holders are in Class A₁ (high risk), 40% are in Class A₂ (medium risk), and 50% are in Class A3 (low risk). The probability a Class A₁ policy has a claim in a given year is .10; similar probabilities for Classes A2 and A3 are .05 and .02. Find the probability that if a claim is made, it is for a Class A₁ policy.

In an insurance portfolio 10% of the policy holders are in Class A₁ (high risk), 40% are in Class A₂ (medium risk), and 50% are in Class A3 (low risk). The probability a Class A₁ policy has a claim in a given year is .10; similar probabilities for Classes A2 and A3 are .05 and .02. Find the probability that if a claim is made, it is for a Class A₁ policy.

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter11: Data Analysis And Probability

Section11.8: Probabilities Of Disjoint And Overlapping Events

Problem 2C

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