An insurance company processes claims
for car theft on a monthly basis. An
individual's probability of having their car
stolen in any given month is 0.003, and
98% of those who have their car stolen
make a claim. A small proportion of cus-
tomers (1 in every 10,000) will put in a
claim even though their car has not been
stolen (i.e., a fraudulent claim). (a) Find
the probability that an individual customer
makes a claim. (b) Find the probability
that a claim made by a customer is
fraudulent.