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

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.

Graphs and Functions

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

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts