This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Problem 3: An insurance company believes that people can be divided into two classes: those who are accident prone and those who are not. Their statistics show that an accident-prone person will have an accident at some time within a xed 1-year period with probability . 4 , whereas this probability decreases to . 2 for a non-accident-prone person. 1. If we assume that 30 percent of the population is accident prone, what is the probability that a new policyholder will have an accident within a year of purchasing a policy? 2. Suppose that a new policyholder has an accident within a year of purchasing a policy. What is the probability that he or she is accident prone? Problems 4-8: The following problems from Chapter 2 of the text book: 2.62, 2.69, 2.73, 2.75, 2.79...
View Full Document
This note was uploaded on 09/28/2010 for the course EE 131A EE 131A taught by Professor Vwaniroychowdhury during the Winter '10 term at UCLA.
- Winter '10