Answer:
Probability that the claim came from a high-risk client = claim from a high-risk client / claim from all clients
= 0.002 / (0.002 + 0.002 + 0.00175)
= 0.002 / 0.00575
= 0.3478
= 0.35
Step-by-step explanation:
Claims filed by each group of clients is gotten by multiplying the probabilities of occurrence by proportions of the number of client in the category
Claims filed by high-risk clients = 0.02 * 0.10 = 0.002
Claims filed by medium-risk clients = 0.01 * 0.20 = 0.002
Claims filed by low-risk clients = 0.0025 * 0.70 = 0.00175
