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

Answer:

b. P(C|U)

Step-by-step explanation:

Conditional Probability

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

$P(B|A) = \frac{P(A \cap B)}{P(A)}$

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.