Question

Let U be the event that a randomly chosen employee of an insurance company has been an underwriter. Let C be the event that a randomly chosen employee of an insurance company has been a claims adjuster. Identify the answer which expresses the following with correct notation: Of all the employees of an insurance company who have been underwriters, the probability that a randomly chosen employee of an insurance company has been a claims adjuster. Select the correct answer below:

a. P(C) AND P(U)
b. P(C|U)
c. P(U|C)
d. P(U AND C)

Answer 1

b. P(C|U)

Explanation:

Conditional Probability

We use the conditional probability formula to solve this question. It is

`P(B|A) = (P(A \cap B))/(P(A))`

In which

P(B|A) is the probability of event B happening, given that A happened.

`P(A \cap B)` is the probability of both A and B happening.

P(A) is the probability of A happening.

In this question:

Event U: Event that a randomly chosen employee of an insurance company has been an underwriter.

Event C: Event that a randomly chosen employee of an insurance company has been a claims adjuster.

Select the correct answer below:

Claims adjuster given that it has been an underwriter, so P(C|U), and the correct answer is given by option b.