Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

iPad 5:15 PM account.coachingactuaries.com ¢ long ins www.mary ACSC37_ would you

ID: 3352906 • Letter: I

Question

iPad 5:15 PM account.coachingactuaries.com ¢ long ins www.mary ACSC37_ would you...-..w! Juwel alt up: My..· 3of15 v. Questions 9:35:18 Question 3 Mark An insurance company sells one-fourth as many preferred policies as standard policies and one-fourth as many ultra-preferred policies as preferred policies. All policies are classified as standard, preferred, or ultra-preferred. Caleulate the probability that a randomly selected policy is ultra-preferred. A 0.05 B 0.10 C 0.17 D0.25 E 0.34 Grade &Review; REPORT ID: 0542 Previous Next

Explanation / Answer

0.25 times of preferred is sold as standard. Thus, 1 standard will be equivalent to 4 preferred

0.25 times of ultra preferred is sold as preferred. Thus, Thus, 1 preferred will be equivalent to 4 ultra preferred

Thus, 1 ultra preferred = 4 preferred = 16 standard (equivalent sell count)

Thus, probability of selecting 1 ultra preferred at random = 1 / (1+4+16) = 0.0476 approx 0.05