Indian Institute of Foreign Trade 2010 Solved Paper

If there are 10000 policy holders then 5000 are of standard, 3000 are of preferred and 2000 are of ultra-preferred0.01 of standard policy holders may die next year i.e. 50 of standard policy holder may die next year0.008 of preferred policy holders may die next year i.e. 24 of preferred policy holders may die next year0.007 of ultra-preferred policy holders may die next year i.e. 14 of ultra-preferred policy holders may die next yearTotal number of people that may die next year $=50+24+14=88$ Probability that the person died is a preferred policy holder is $\frac{24}{88}=0.2727$Therefore our answer is option 'B'