Hi Ganesh,
This problem can be easily solved using a tree diagram.
But, before that let’s find out the value of x.
Here it’s given that on average 50 people have a claim every policy period.
So, x+2x+3x=50 =>x=8.33
Now,
A, B, and C represents territories^
Thus,
P (C|Claim) = [(3*8.33)*300] / [(150*8.33)+(250*2*8.33)+(300*3*8.33)]
[Follow the attached image while reading this equation and you’ll see it’s easy]
Therefore, P (C|Claim) = 58.06 (option D)
Hi Ganesh,
This problem can be easily solved using a tree diagram.
But, before that let’s find out the value of x.
Here it’s given that on average 50 people have a claim every policy period.
So, x+2x+3x=50 =>x=8.33
Now,
A, B, and C represents territories^
Thus,
P (C|Claim) = [(3*8.33)*300] / [(150*8.33)+(250*2*8.33)+(300*3*8.33)]
[Follow the attached image while reading this equation and you’ll see it’s easy]
Therefore, P (C|Claim) = 58.06 (option D)