I need question 5, and if possible question 4 checked. ule UleR y combination or
ID: 3070054 • Letter: I
Question
I need question 5, and if possible question 4 checked.
ule UleR y combination or 2 There are 720 ways QUESTION 4 Suppose that start-up companies in the area of biotechnology have probability 0 3 of venture capitalist invests in one firm of each type Assume the companies function independently (3DP) ng profitable and that those in the area of information technology have probabily 0 15 of becoming prolitable A .1 1 The probability that ne her companies will become profitable is 550 . 2. The probability that both companies will become profitable is [045 3. The probability that at least one of the two companies become profitable s 405 QUESTION 5 An auto moble insurance company o as cu tomers into tree ta e ones po sks m- um ks. and oor isks Assume ha 75%ofthe customers r. O d isks,5% ie medium is s n d 10% are 0 or course of a year a good risk customer has probability 0.01 of fling an accident claim a medium risk customer has probabity 0 02, and a poor fisk customer has probability 0025 A customer is chosen at random. Determine a. The probability that the customer is a good risk and has filed a claim is b. The probability that the customer has filed a claim is c. Given that the customer has filed a claim, the probability that the customer is a good risk is (4DP) (3DPY 4DP) Click Save and Submit to save and submit. Click Save All Answers to save all ansvers Save All Answers 00@a(.. ® eExplanation / Answer
5) A) The probability that the customer is a good risk and has filled a claim = 0.01 * 0.75 = 0.0075
B) The probability that the customer has filled a claim = 0.01 * 0.75 + 0.02 * 0.15 + 0.025 * 0.1 = 0.013
C) P(customer is a good risk | the customer has filled a claim) = P(the customer has filled a claim | customer is a good risk) * P(customer is a good risk)/P(the customer has filled a claim)
= 0.01 * 0.75/0.013 = 0.5769
The b part and c part of Questio - 4 are correct.
But a part is incorrect.
4)a) The probability that neither company will become profitable = (1 - 0.3) * (1 - 0.15)
= 0.7 * 0.85 = 0.595