If there are 10000 policy holders then 5000 are of standard, 3000 are of preferred and 2000 are of ultra-preferred 0.01 of standard policy holders may die next year i.e. 50 of standard policy holder may die next year 0.008 of preferred policy holders may die next year i.e. 24 of preferred policy holders may die next year 0.007 of ultra-preferred policy holders may die next year i.e. 14 of ultra-preferred policy holders may die next year Total number of people that may die next year =50+24+14=88 Probability that the person died is a preferred policy holder is