Conditional probability of making claim by automobile insurance policyholder

Win_odd Dhamnekar

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Is the above intuitive explanation of " why the inequality [imath] P(A_2|A_1) > P(A_1) [/imath] is true" correct?
 
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Is the above intuitive explanation of " why the inequality [imath] P(A_2|A_1) > P(A_1) [/imath] is true" correct?
You stated that the inequality is true, but haven't shown any reasoning.
So why is this true, mathematically? [imath]\frac{\alpha(p_m)^2+(1-\alpha)(p_f)^2}{\alpha(p_m)+(1-\alpha)(p_f)}>\alpha(p_m)+(1-\alpha)(p_f)[/imath]

The intuitive reason is if a person has a history of getting making claims, they'll have a tendency to make more claims. That's why insurance companies raise your premium after you filed a claim.
 
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