epr044 3 An insurance company divides its policy holders into two groups: clumsy and non-clumsy. A clumsy person will have an accident at some time with a fixed one-year period with probability 2/5 whereas this probability decreases to 1/5 for a non-clumsy person. Assume that 30% of the population is clumsy. (a) What is the probability that a new policyholder will have an accident within a year of purchasing a policy? (b) Suppose a new policyholder has an accident within a year of purchasing a policy. What is the probability that he or she is clumsy? epr045