Actuarial Science - Part 2

Based on Actuarial Science - Part 1 problem, the probability that the policyholder is a good driver given that the actuary's previous observations can be expressed as a b \,\dfrac{a}{b} . Calculate a + b \,a+b .


The answer is 33.

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2 solutions

Tunk-Fey Ariawan
Mar 27, 2014

We use the result from the solution Actuarial Science - Part 1 problem. Therefore, the probability that the policyholder is a good driver given that N 1 = 0 \text{N}_1=0 and N 2 = 1 \text{N}_2=1 is Pr [ G N = 0 N = 1 ] = Pr [ N = 0 G ] Pr [ N = 1 G ] Pr [ G ] Pr [ N = 0 N = 1 ] = 0.7 0.2 0.75 0.1425 = 14 19 . \begin{aligned} \text{Pr}[\text{G}|\text{N}=0\cap\text{N}=1]&=\frac{\text{Pr}[\text{N}=0|\text{G}]\cdot\text{Pr}[\text{N}=1|\text{G}]\cdot\text{Pr}[\text{G}]}{\text{Pr}[\text{N}=0\cap\text{N}=1]}\\ &=\frac{0.7\cdot0.2\cdot0.75}{0.1425}\\ &=\frac{14}{19}. \end{aligned} Thus, p + q = 14 + 19 = 33 p+q=14+19=\boxed{\color{#3D99F6}{33}} .


# Q . E . D . # \text{\# }\mathbb{Q.E.D.}\text{ \#}


Kevin Bourrillion
Apr 26, 2014

Likewise, I built on my solution to the other problem and simply divided 420 by 570.

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