NEW HERE? LEARN MORE
closeclose
Last visit was: 25 Apr 2024, 01:33 It is currently 25 Apr 2024, 01:33
Decision Tracker
My Rewards
New posts
New comers' posts

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

An insurance company has a paper record and an electronic record for

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 92907
Own Kudos [?]: 618876 [9]
Given Kudos: 81595
Send PM
CAT Tests Forum Quiz Mode
An insurance company has a paper record and an electronic record for [#permalink] New post   27 Jan 2021, 14:36
9
Bookmarks
Expert Reply
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

60% (02:02) correct 40% (04:49) wrong based on 53 sessions
Hide Show timer Statistics
An insurance company has a paper record and an electronic record for every claim. For an inaccurate paper record, the probability is 60% that the electronic record is inaccurate. For an inaccurate electronic record, the probability is 75% that the paper record is inaccurate. 3% of all the claims are inaccurate both in paper record and in electronic record. Pick one claim randomly, what is the probability that it is both accurate in paper record and in electronic record?

A. 97%
B. 94%
C. 68%
D. 65%
E. 35%


Are You Up For the Challenge: 700 Level Questions: 700 Level Questions

Show Spoiler
An insurance company has a paper record and an electronic record for every claim. For an inaccurate paper record, 60% chances that the electronic record is inaccurate. For an inaccurate electronic record, 75% chances that the paper record is inaccurate. 3% of all the claims are inaccurate both in paper record and in electronic record. Pick one claim randomly, what are the chances that it is both accurate in paper record and in electronic record?
User avatar
G
meanup
Senior Manager
Senior Manager
Joined: 15 Jun 2017
Posts: 388
Own Kudos [?]: 392 [3]
Given Kudos: 7
Location: India
An insurance company has a paper record and an electronic record for [#permalink] New post   29 Jan 2021, 21:26
1
Kudos
2
Bookmarks
Product Rule

\(P(X ∩ Y)= P(X|Y)P(Y)\)

Given; \(P(X|Y) = 60\) Whereas, Y= inaccurate paper record and X= inaccurate electronic record

\(P(Y)=\frac{P(X ∩ Y)}{ P(X|Y)}=\frac{3}{60}=\frac{1}{20}\)

\(P(X)=\frac{P(X ∩ Y)}{ P(Y|X)}=\frac{3}{75}=\frac{1}{25}\)

\(P(X ∪ Y)= P(X) + P(Y)-P(X ∩ Y) = \frac{1}{25}+\frac{1}{20}-\frac{3}{100}=\frac{6}{100}\)

Therefore, Required Probability:

\(P`=1-P=1-\frac{6}{100}=\frac{94}{100}\)

Ans B
User avatar
G
rsrighosh
Manager
Manager
Joined: 13 Jun 2019
Posts: 203
Own Kudos [?]: 92 [0]
Given Kudos: 646
GMAT 1: 490 Q42 V17
GMAT 2: 550 Q39 V27
GMAT 3: 630 Q49 V27
Send PM
An insurance company has a paper record and an electronic record for [#permalink] New post   30 Jan 2021, 07:19
Seems like this is a dependent event. Is this a GMAT type question?
User avatar
G
Regor60
Senior Manager
Senior Manager
Joined: 21 Nov 2021
Posts: 437
Own Kudos [?]: 209 [0]
Given Kudos: 344
Send PM
Re: An insurance company has a paper record and an electronic record for [#permalink] New post   21 Oct 2023, 11:54
Inacc P Inacc P Acc P Acc P
Inacc E Acc E Inac E Acc E
_______ _______ ______ _____

a b c d


a/a+b = .6.

a/a+c = .75

a=.03

Find d


.03=.18+.6b. b=.02

.03=(.09/4)+.75c. c=.01

a+b+c+d=1

d=1-.03_.02-.01 = .94

Posted from my mobile device
GMAT Club Bot
gmatclubot
Re: An insurance company has a paper record and an electronic record for [#permalink]
21 Oct 2023, 11:54
Moderators:
Bunuel
Math Expert
92904 posts
yashikaaggarwal
Senior Moderator - Masters Forum
3137 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions