Question

An automobile insurance company has determined the accident rate​ (probability of having at least one accident during a​ year) for various age groups​ (see Table). Suppose that a policyholder calls in to report an accident. What is the probability that he or she is over​ 60?   over 60 - proportion of total insured .10 & accident rate =0.06 (erased on table and could not add it back on accident ) What is the the probability that he or she is over 60? (simplify answer and round to 3 decimal places)

Age group Proportion of total insured Accident rate Under 21 .05 .06 ​21-30 .10 .06 ​31-40 .25 .04 ​41-50 .30 .025 ​51-60 .20 .025 Over 60 .10

Answer 1

Answer:

Given that

An automobile insurance company has determined the accident rate​ (probability of having at least one accident during a​ year) for various age groups​ (see Table). Suppose that a policyholder calls in to report an accident. What is the probability that he or she is over​ 60.

S.No.	Age group	Proportion of total insured	Accident Rate
1	< 21	.05	.06
2	21-30	.10	.06
3	31-40	.25	.04
4	41-50	.30	.025
5	51-60	.20	.025
6	>60	.10	.06

Let Bi(i^th age group i = 1,2,......7) be the event the he or his belonging i^th group and let be the event of related accident rate.

Pr(B₆) = 0.10

and

Pr(A\B₆) = 0.06

So the solution is 0.16.