Purchase Solution

Probability : Proportion and Groups

Not what you're looking for?

Ask Custom Question

Problem 8. Suppose that an insurance company classifies people into low, average and high risk persons. Their records indicate that the probabilities of being involved in an accident over a 1-year period are 0.05, 0.15 and 0.30 for low, average and high risk persons, respectively. Assume that 30% of the population is low-risk, 50% is average-risk and 20% is high-risk.
(a) What proportion of people have accidents in a fixed year?
(b) John Doe had no accidents in 2004, but his wile Jane did. What are he probabilities for each of them to be low-risk persons? Average-risk? High-risk?

Attachments
Purchase this Solution
Solution Summary

Probabilities, proportions and groups are investigated. The solution is detailed and well presented. The solution was given a rating of "5" by the student who originally posted the question.

Solution Preview

Please see the attached file for the full solution.
Thanks for using BrainMass.

Solution:
A—accident
—no accident
-- Low risk persons
Average—Average-risk ...

Purchase this Solution
Free BrainMass Quizzes
Probability Quiz

Some questions on probability

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts

Graphs and Functions

This quiz helps you easily identify a function and test your understanding of ranges, domains , function inverses and transformations.

Exponential Expressions

In this quiz, you will have a chance to practice basic terminology of exponential expressions and how to evaluate them.

Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

View More Free Quizzes
Related BrainMass Solutions

  • True Experimental Study

    If this is not possible, and a researcher uses stratified sampling, the groups are sampled individual according to a PROBABILITY system based on the proportion of the subgroup in the population as a whole.

  • Calculating mean and standard deviation in the given case

    459120 Probability A candy company claims that 17% of its plain candies are orange, and a sample of 100 such candies is randomly selected. a. Find the mean and standard deviation for the number of orange candies in such groups of 100. b.

  • Explanation of odds ratio in a study of smoking.

    If the probability of an event happening is p then the odds associated with the event are: Odds = (1-p) / p In this study, samples were taken from the two groups and estimates of the odds were calculated on each of them.

  • Statistical Exercises with Z-Scores

    Find the probability that a randomly selected adult has an IQ between 110 and 120 (referred to as bright normal).

  • Sampling Distribution

    95.45% probability that the proportuion of flights are late is between 22.262% and 27.738% z=(proportion -population proportion)/σp= 3 Probability value corresponding to Z = 3 is 99.73% 0r 0.9973 proportion

  • Proportions

    a. what is the shape, mean, and standard deviation of the sampling distribution of the sample proportion for samples of 200?

  • probability of sample proportion by normal approxiamtion

    The probability that a random sample of 300 households will have a sample proportion greater than .45 is: ______ The probability that the 300 household sample proportion will be between .35 and .45 is: _____.

  • calculating the probability for population proportion

    What is the probability that the sample proportion will be within ± .04 of the population proportion? a. By the central limit theorem, the sampling distribution of proportion is normal with mean 0.56 and variance=56%*(1-56%)/400=0.000616 b.

  • Explain the purpose of Chi-Squared and when to apply it.

    It is similar to other tests because it uses probability to discern whether the proportion in the groups is significantly different from expectations (natural group distribution) and therefore your study can reject the null hypothesis.

View More Related Solutions