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 insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.05 (5% of all such individuals). Homeowner's Auto H N L M 0.04 0.05 0.05 0.02 L M 0.07 0.11 0.20 0.11 H 0.02 0.03 0.15 0.15 Suppose an individual having both types. f policies randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? 0.07 (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible 0.16 homeowner's deductible 0.19 (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles? 0.25 (d) Based on your answer in part (c), what is the probability that the two categories are different? (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?
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 insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.05 (5% of all such individuals). Homeowner's Auto H N L M 0.04 0.05 0.05 0.02 L M 0.07 0.11 0.20 0.11 H 0.02 0.03 0.15 0.15 Suppose an individual having both types. f policies randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? 0.07 (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible 0.16 homeowner's deductible 0.19 (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles? 0.25 (d) Based on your answer in part (c), what is the probability that the two categories are different? (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?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.2: Representing Data
Problem 22PFA
Related questions
Question
P7. (Please answer d, e, and f!)
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 0.05 (5% of all such individuals).
Homeowner's
Auto
M
H
N L
0.04 0.05 0.05 0.02
L
M
0.07 0.11 0.20 0.11
H
0.02 0.03 0.15 0.15
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?
0.07
(b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible?
auto deductible
0.16
0.19
homeowner's deductible
(c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles?
0.25
(d) Based on your answer in part (c), what is the probability that the two categories are different?
(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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill