Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

The Acme Insurance company has two types of customers, careful and reckless. A careful customer has an accident during the year with a probability of 0.01. A reckless customer has an accident during the year with a probability of 0.04. 80% of the customers are careful and 20% of the customers are reckless. Suppose a randomly chosen customer has an accident this year. What is the probability that this customer is one of the careful customers

Sagot :

Answer:The total probability that a random person has an accident in the given year is

.8×.01+.2×.04=0.016

The portion of that which is explained by careful drivers is .8×.01=.08. Thus the answer is

.8×.01.8×.01+.2×.04=.5

Thus it is equally likely that your accident victim was careful or careless.

Speaking informally, that's because, while it's four times more likely that a randomly selected driver is careful, it is one fourth as likely that a careful driver will have an accident, and the two

Step-by-step explanation:

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.