An insurance company insured 2000 scooters and 3000 motorcycles. The probability of an accident involving a scooter is 0.01, and that of motorcycles is 0.02. An insured vehicle met with an accident. Find the probability that the accidented vehicle was a motorcycle.
Let M : Motorcycle
S : Scooter
A : Accident vechicle
We want to find P(M|A), i.e. probability of accident vehicle was a motorcycle
Conclusion: Therefore, the probability of accident vechile was motorcycle is