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Question 3: All employees of a. certain company have medical coverage, 30% have deluxe coverage, 60% have standard coverage and 10% have economy coverage. From
Question 3: All employees of a. certain company have medical coverage, 30% have deluxe coverage, 60% have standard coverage and 10% have economy coverage. From recorded data, the probability that an employee with deluxe coverage will submit no claims during the year is 0.1, with the corresponding gures for standard and economy being 0.4 and 0.7 respectively. (a) What is the probability that a randomly selected employee of the com- pany will submit no claims during the year? (b) If the selected company submits no claims during the Year, what is the probability that the employee has deluxe coverage? Standard coverage? Economy coverage
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The problem is about calculating probabilities using the law of total probability and Bayes theorem Given Information Coverage Types Deluxe 30 of employees Standard 60 of employees Economy 10 of emplo...Get Instant Access to Expert-Tailored Solutions
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