An insurance company sells one-fourth as many preferred policies as standard policies and one-fourth as many ultra-preferred policies as preferred policies. All policies are classified as standard, preferred, or ultra-preferred. Calculate the probability that a randomly selected policy is ultra-preferred.

4.7619%

Step-by-step explanation:

Let's suppose the insurance company sells 16 standard policies.

For every 16 standard policies sold, the company sells 1/4 x 16, or 4, preferred policies.

For every 4 preferred policies sold, the company sells 1/4 x 4, or 1, ultra-preferred policy.

Therefore, for every ultra-preferred policy sold, the company sells:

16+4+1=21 total policies

So the probability of any 1 random policy selected being ultra-preferred is 1/21, or 4.7619%

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step-by-step explanation:

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