An automobile insurance company divides customers into three categories: good risks, medium risks, and poor risks. Assume

Question:

An automobile insurance company divides customers into three categories: good risks, medium risks, and poor risks. Assume that of a total of 11,217 customers, 7792 are good risks, 2478 are medium risks, and 947 are poor risks.

As part of an audit, one customer is chosen at random.

a. What is the probability that the customer is a good risk?

b. What is the probability that the customer is not a poor risk? image text in transcribed

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Elementary Statistics

ISBN: 9781259969454

3rd Edition

Authors: William Navidi, Barry Monk

See More Books

Question Posted: May 06, 2024 02:11 AM

See More Questions

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...
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...
Golden Company sells its product for $42 per unit. The company's unit product cost based on the full capacity of 400,000 units is as follows: Direct materials Direct labor Manufacturing overhead Unit...
9:49 X Bank Reconciliation Assignment 1 PDF 150 KB Assignment #1 - Bank Reconciliation This assignment has 33 total marks. This assignment is worth 5% of your final grade. This assignment is due...
(a) Is it plausible that the heights are normally distributed with a mean of 70 inches and a standard deviation of 2 inches? (b) Is it plausible that the heights are normally distributed with a mean...
Make a plot of the kinetic energy for both the singlet and triplet states of H 2 , as a function of R/a. Do the same for the electron-proton potential energy and for the electronelectron potential...
Purchasing digital devices for children. Refer to the PC Magazine (December 2019) article on parents opinions on the appropriate age a child should receive their first digital device, Exercise
Frank Willingham has the following transactions during the year: Sale of office equipment on March 15 that cost $20,000 when purchased on July 1, 2012. Frank has claimed $5,000 in depreciation and...
products are standard commercial terms, i . e . , you issue or receive a purchase order, which triggers an invoice, and the invoice is paid 3 0 days later. Step 1 : Order and receive $ 1 , 2 0 0 of...
A fair die is rolled three times. What is the probability that it comes up 6 at least once?
A company has hired 12 new employees, and must assign 8 to the day shift and 4 to the night shift. a. In how many ways can the assignment be made? b. Assume that the 12 employees consist of six men...
Below is a flowchart representing the process of using test data for auditing purposes. It is only partially labeled. Complete the flowchart by labeling each blank symbol. SIMULATED TRANSACTIONS C...
n1 = 20, n2 = 25, S = 607, H1: 1 2. In Exercises 710, compute S, S, and the value of the test statistic z. Then find the P-value for the specified alternate hypothesis and values of n1, n2, and S.
To determine whether traffic levels differ between the morning and evening rush hours, a traffic engineer counted the number of cars passing through a certain intersection during five-minute periods...
Macon Timber Company established a $\$ 150$ petty cash fund on January 1, 2012. Required a. Is the establishment of the petty cash fund an asset source, use, or exchange transaction? b. Record the...
Following is a bank reconciliation for Holt's Sandwich Shop for May 31, 2012: Because of limited funds, Holt's employed only one accountant who was responsible for receiving cash, recording receipts...
For each of the following situations, fill in the blank with FIFO, LIFO, or weighted average. a. b. c. d. e. f. would produce the highest amount of net income in an inflationary environment. would...
Explain the difference between underallocated overhead and overallocated overhead. What causes each situation?
Design a circuit which negative the content of any register and store it in the same register.
Current Attempt in Progress Craig Company asks you to review its December 3 1 , 2 0 2 0 , inventory values and prepare the necessary adjustments to the books. The following information is given to...
Define the two types of hot assets that a partnership might own.
Assume that by Dec 1 2021, tax rate changed to 27.5%. With reference to AASB112 Income Taxes, discuss accounting treatment of the deferred tax asset and deferred tax balances as at 01 Dec 2021...

An automobile insurance company divides customers into three categories: good risks, medium risks, and poor risks. Assume

Question:

Step by Step Answer:

Elementary Statistics

Students also viewed these Business questions