20% of the people are “accident-prone” and have a probability 0.15 of having an accident in a

1-year period in contrast to a probability of 0.05 of having an accident for the other 80% of the people. If

we pick a person at random:

(a) What is the probability that the person will have an accident this year?

(b) What is the probability that the person is accident-prone if the person had an accident last year?

(c) What is the probability that the person will have an accident this year if the person already had one

accident last year?

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