Question

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?
b. A “medium” risk driver?
c. A “poor” driver?



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  • CreatedDecember 10, 2014
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