Answer:
B) 0.15 Pr (B)
Step-by-step explanation:
A is the event that a policyholder is classified as low-risk.
B is the event that a policyholder suffered a loss.
P(A∩B) is the probability that a low risk policyholder suffered a loss is 15%.
P(A∩B)= 15%= 15/100= 0.15
P(B∩A) is the probability that a policyholder who suffered a loss is low-risk is = 5%= 5/100= 0.05
Intersection means finding those elements which are common to both sets. Now we have to find those elements of A which are common to B. This is already given in the statement above and is 15 %.
Hence
P(A∩B)= 15%= 15/100= 0.15
Choice B is the correct answer.