View the step-by-step solution to:

ABC Auto Insurance classifies drivers as good, medium, or poor risks. Drivers who apply to them for insurance fall into these three groups in the...

ABC Auto Insurance classifies drivers as good, medium, or poor risks. Drivers who apply to them for insurance fall into these three groups in the proportions 30%, 50%, and 20%, respectively. The probability a “good” driver will have an accident is .01, the probability a “medium” risk driver will have an accident is .03, and the probability a “poor” driver will have an accident is .10. The company sells Mr. Brophy an insurance policy and he has an accident. What is the probability Mr. Brophy is:

 

a. A “good” driver? (Round your answers to 3 decimal places.)

 

  Probability   

 

b. A “medium” risk driver? (Round your answers to 3 decimal places.)

 

  Probability   

 

c. A “poor” driver? (Round your answers to 3 decimal places.)

 

  Probability



Top Answer

a) P(good driver/accident) = P(good driver & accident)/P(accident) P(accident occuring) =... View the full answer

Sign up to view the full answer

Other Answers

The answer is... View the full answer

proba.JPG

A good driver = 0.3(30/100) A “medium” risk driver =0.5(50/100) A poor”... View the full answer

ABC.png

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online