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Questions › DSE › DSE 2017 › Q33
2 marks, −0.666666666666667Statistics › Probability and Bayes' theorem › Probability axioms, events and sample spacesModerateabout 3 min

DSE 2017 Question 33: Probability and Bayes' theorem

A policyholder submits up to 555 claims; pnp_npn​ is the probability of exactly nnn claims, n=0,…,5n=0,\dots,5n=0,…,5. It is known that (a) the difference pn−pn+1p_n-p_{n+1}pn​−pn+1​ is constant for n=0,…,4n=0,\dots,4n=0,…,4, and (b) 40%40\%40% of policyholders submit 000 or 111 claim. The probability that a policyholder submits 444 or 555 claims is

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A policyholder submits up to 5 claims; pₙ is the probability of exactly n claims, n=0,…,5. It is known that (a) the difference pₙ-pₙ₊₁ is constant for n=0,…,4, and (b) 40% of policyholders submit 0 or 1 claim. The probability that a policyholder submits 4 or 5 claims is (A) 0.06 (B) 0.19 (C) 0.26 (D) 0.34

Also written as: A policyholder submits up to 5 claims; p_n is the probability of exactly n claims, n=0,...,5. It is known that (a) the difference p_n-p_(n+1) is constant for n=0,...,4, and (b) 40% of policyholders submit 0 or 1 claim. The probability that a policyholder submits 4 or 5 claims is

Probability and Bayes' theorem has come up 190 times in 7 exams since 2004.

What this question tests

This question is on Probability axioms, events and sample spaces, part of Probability and Bayes' theorem in Statistics.

The rules every probability must follow and the vocabulary of events.

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