Independent solution

How to solve this Conditional Probability question

Setup

Setup

Write F, W, and T for occurrence of a loss in the first, second, and third categories. Their loss probabilities are the complements of the given no-loss probabilities.

Pr(F)=0.10,Pr(W)=0.10,Pr(T)=0.20\Pr(F)=0.10,\qquad \Pr(W)=0.10,\qquad \Pr(T)=0.20

Model

Model

Under independence, multiply across categories for each of the three disjoint exactly-one cases.

Pr(FWcTc)=0.10(0.90)(0.80)=0.072\Pr(F\cap W^c\cap T^c)=0.10(0.90)(0.80)=0.072
Pr(FcWTc)=0.90(0.10)(0.80)=0.072\Pr(F^c\cap W\cap T^c)=0.90(0.10)(0.80)=0.072
Pr(FcWcT)=0.90(0.90)(0.20)=0.162\Pr(F^c\cap W^c\cap T)=0.90(0.90)(0.20)=0.162

Compute

Compute

Add the exactly-one cases for the conditioning probability, then divide the target case by that total.

Pr(exactly one category)=0.072+0.072+0.162=0.306\Pr(\text{exactly one category})=0.072+0.072+0.162=0.306
Pr(Fexactly one category)=0.0720.306=0.2352941176\Pr(F\mid\text{exactly one category})=\frac{0.072}{0.306}=0.2352941176\ldots

Answer

Answer

The conditional probability rounds to 0.235.

0.235(B)\boxed{0.235\quad\text{(B)}}