An insurance company divides its policy holders into three categories: low risk, moderate risk, and high risk. The low-risk policy holders account for 55% of the total number of people insured by the company. The moderate-risk policy holders account for 25%, and the high-risk policy holders account for 20%. The probabilities that a low-risk, moderate-risk, and high-risk policy holder will file a claim within a given year are respectively 5%, 15% and 60%. Given that a policy holder files a claim this year, what is the probability that the person is a moderate-risk policy holder?

0.2027 = 20.27% probability that the person is a moderate-risk policy holder

Step-by-step explanation:

Conditional Probability

We use the conditional probability formula to solve this question. It is

In which

P(B|A) is the probability of event B happening, given that A happened.

is the probability of both A and B happening.

P(A) is the probability of A happening.

In this question:

Event A: Policy holder files a claim.

Event B: The person is a moderate-risk policy holder.

Probability of filling a claim:

5% of 55%(low risk)

15% of 25%(moderate risk)

60% of 20%(high risk).

So

Files a claim and is moderate risk:

15% of 25%(moderate risk)

So

Given that a policy holder files a claim this year, what is the probability that the person is a moderate-risk policy holder?

0.2027 = 20.27% probability that the person is a moderate-risk policy holder

y=1/4x-4

step-by-step explanation:

find the magnitude of the trig term  

csc

(

x

)

−

1

by taking the absolute value of the coefficient.

1

find the lower bound of the range.

tap for more

y

=

−

2

find the upper bound of the range.

tap for more

y

=

0

the range is  

y

≤

−

2

or  

y

≥

0

.

(

−

∞

,

−

2

]

∪

[

0

,

∞

)

{

y

|

y

≤

−

2

,

y

≥

0

}

step-by-step explanation: