contestada

An auto insurance company classifies each motorist as "high risk" if the motorist has had at least one moving violation during the past calendar year and "low risk" if the motorist has had no violations during the past calendar year. According to the company's data, a high-risk motorist has a 50% chance of remaining in the high-risk category the next year and a 50% chance of moving to the low-risk category. A low-risk motorist has a 90% chance of moving to the high-risk category the next year and a 10% chance of remaining in the low-risk category. In the long term, what percentage of motorists fall in each category? (Round your answers to two decimal places.)

high-risk category %
low-risk category %

Respuesta :

anthougo

The percentage of motorists falling in each category, in the long term, are as follows:

High-risk category = 70%

Low-risk category = 30%

Data and Calculations:

Risk Profile Categories of Motorists

                                                       High Risk      Low Risk

Probability of remaining

 in the same category                      50%              10%

Probability of moving to another

 category                                          50%              90%

Probability a motorist falling in the high-risk category = (50% x 50%) + (50% x 90%)

= 25% + 45%

= 70%

Probability a motorist falling in the low-risk category = (50% x 50%) + (50% x 10%)

= 25% + 5%

= 30%

Thus, the probability of a motorist falling in the high-risk category is 70%, while the probability of a motorist falling in the low-risk category is 30%.

Learn more about probability here: https://brainly.com/question/24756209

Otras preguntas