Question

If P(B) = 0.55; P(A|B)= 0.70, P(B0 )=0.45; P(A|B0 )=0.40. Find the P(B|A)

Suppose that you are forming a team of 8 managers from different departments within your company. Your company has a total of 30 managers, and 10 of these managers are from the finance department. If you are to randomly select members of the team, what is the probability that the team will contain 2 managers from the finance department?

Suppose you work for an insurance company and you sell a $10,000 one-year term insurance policy at an annual premium of $290. Actuarial tables show that the probability of death during the next year for a person of your customer’s age, sex, health, etc., is .001 . What is the expected gain (amount of money made by the company) for a policy of this type? [Hint: If the customer dies, the gain is negative because the company must pay $10,000, for a net ‘‘gain’’ of $ ( 290 -10,000 ) = $ -9,710.]

Answer 1