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

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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a PG... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Statistics Questions!

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...

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...

88. 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...

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...

total of t? hours a weel, she hab determined that foe mokry hour she works at Jabl, the needs 2 hours of preparabion sime, and for nuery hour whe works at Job V. ahe needs one houg of preparation...

Prepare a summary of the auto industry by reviewing the attached report. Then compare these two companies, Group 1 Auto and Sonic Automotive. Base on a review of the two companies financial...

Please I have an article on which the questions come from. Please feel out the form appropriately. Please let me know if you can do a good job on this. I have similar exercise coming. Thanks ARTICLE...

Hi. I need Chapter 11 part 1-4 Let me know. Thanks! (it wont letme add more than $8, but I will give $12+ tip) Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK...

6 | Consumer Choices Figure 6.1 Investment Choices Higher education is generally viewed as a good investment, if one can afford it, regardless of the state of the economy. (Credit: modification of...

Sodium borodeuteride (NaBD4) and lithium aluminum deuteride (LiAlD4) are convenient reagents for introducing deuterium, the mass 2 isotope of hydrogen, into organic compounds. Write the structure of...

A reduction of 20% in the price of sugar enables Mr. Bhadra to buy an extra 5 kg of it for Rs.320. The original rate of sugar is 1. Rs.12 per kg 2. Rs.15 per kg 3. Rs.16 per kg 4. Rs.20 per kg

Joseph contributed $ 2 5 7 5 0 in cash and equipment with a tar basis of $ 4 4 , $ 0 0 and a fair maket value of $ 1 9 , 5 0 0 to Burfy Her Partueretilp in ewchange for e patnemhip intereat What is...

Post the following transactions to the ledger of King Company. The partial ledger of King Company includes Cash, 111; Equipment, 121; Accounts Payable, 211; and A. King, Capital, 311. Use...

The simple interest I on a principal of P dollars

a. Suppose that $68,000 is to be allocated for advertising, research, and investment in the ratio 8:6:3. How much money will be allocated for each b. Computer Warehouse sells batteries ($2) and small...

A quality characteristic of interest for a coffee-bag-filling process is the weight of the coffee in the individual bags. If the bags are under filled, two problems arise. First, customers may not be...

Production Company purchased an equipment in cash on January 1, 2019 with the following information: a) Purchase price: $90000 b) Attorney's fee: $50000 c) Two year insurance policy: $25000 The...

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Padre Company Sol Company Book Book Values...

Dave and Maria are working on the audit of a major client's financing cycle and activities. Dave's supervisor has recently apprised him that he would like Dave to check the details and amounts...