Respuesta :
Answer:
The probability that Actuary Rahul examines fewer policies that Actuary Toby = 0.2857
Step-by-step explanation:
It is said that Actuary Rahul examines a low risk policy
Probability of a low risk policy having a claim = 10% = 0.1
Actuary Toby examines high risk policy
Probability of a high risk policy having a claim = 20% = 0.2
Let the number of policies examined by actuary Rahul before he finds a claim and stop be n
Probability that actuary Rahul examines exactly n policies = [tex]0.9^{n-1} (0.1)[/tex]
Probability that Toby examines more than n policies = [tex]0.8^n[/tex]
Since the claim statuses of policies are mutually independent, the probability that both events happen simultaneously = [tex]0.9^{n-1} (0.1) (0.8)^n[/tex]
probability that both events happen simultaneously = [tex]\frac{0.1}{0.9} (0.72^{n})[/tex]
The probability that Actuary Rahul examines fewer policies that Actuary Toby = [tex]\sum\limits^ \infty_1 {\frac{0.1}{0.9} 0.72^{n} }[/tex] = [tex]\frac{1}{9}\sum\limits^ \infty_1 { 0.72^{n} } = \frac{1}{9} (\frac{0.72}{1-0.72} ) = \frac{1}{9} (\frac{0.72}{0.28} )[/tex]
The probability that Actuary Rahul examines fewer policies that Actuary Toby = 0.2857
