1. An insurance company divides its customers into 2 groups. Twenty percent of customers are in the...
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1. An insurance company divides its customers into 2 groups. Twenty percent of customers are in the high-risk group, and eighty percent are in the low-risk group. The high-risk customers make an average of 1 accident per year while the low-risk customers make an average of 0.1 accidents per year. Eric had no accidents last year. What is the probability that he is a high-risk driver?
2 Eric from Exercise 3.29 continues driving. After three years, he still has no traffic accidents. Now, what is the conditional probability that he is a high-risk driver?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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