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Insurance policies are agreements between consumers and insurance companies that state that the insurance company will assume risk from the consumer for a fee. Dive more into the idea of insurance policies and explore the concept of risk management.
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SOLVED: An insurance company categorizes its customers as to whetherthey are high risk clients, medium risk or low risk clients. Theyfind that 10% are high risk, 30% are medium risk and 60% are lowrisk. The company has also noted that, over a given period of time,5% of the high risk clients file a claim , 1% of the mediumrisk clients file a claim, and 0.1% of the low risk clients file aclaim. What is the probability that a randomly selected claim willcome from a high risk client?
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