An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals). Auto L M H Homeowner's NLMH Suppose an individual having both types of policies is randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? 0.04 0.07 0.05 0.02 0.07 0.09 0.20 0.11 0.02 0.03 0.15 0.15 (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible homeowner's deductible (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles? (d) Based on your answer in part (c), what is the probability that the two categories are different? Need Help? (e) What is the probability that the individual has at least one low deductible level? (f) Using the answer in part (e), what is the probability that neither deductible level is low? Read It Watch It
An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals). Auto L M H Homeowner's NLMH Suppose an individual having both types of policies is randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? 0.04 0.07 0.05 0.02 0.07 0.09 0.20 0.11 0.02 0.03 0.15 0.15 (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible homeowner's deductible (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles? (d) Based on your answer in part (c), what is the probability that the two categories are different? Need Help? (e) What is the probability that the individual has at least one low deductible level? (f) Using the answer in part (e), what is the probability that neither deductible level is low? Read It Watch It
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Transcribed Image Text:An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three
different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various
categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's
deductible and low auto deductible is 0.07 (7% of all such individuals).
Auto
L
M
H
Homeowner's
NLMH
Suppose an individual having both types of policies is randomly selected.
(a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible?
0.04 0.07 0.05 0.02
0.07 0.09 0.20 0.11
0.02 0.03 0.15 0.15
(b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible?
auto deductible
homeowner's deductible
(c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles?
(d) Based on your answer in part (c), what is the probability that the two categories are different?
Need Help?
(e) What is the probability that the individual has at least one low deductible level?
(f) Using the answer in part (e), what is the probability that neither deductible level is low?
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Watch It
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