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 policy- holders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is .06 (6% of all such individuals). Homeowner's Auto N M H .04 .06 .05 .03 M .07 .10 .20 .10 H .02 .03 .15 .15 Suppose an individual having both types of policies is ran- domly selected. a. What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? b. What is the probability that the individual has a low auto deductible? A low 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? 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?

Data on the gasoline tax per gallon (in cents) as of a certain date for the 50 U.S. states and the District of Columbia are shown below. State Gasoline Taxper Gallon State Gasoline Taxper Gallon Alabama 19.1 Missouri 17.2 Alaska 9.1 Montana 27.7 Arizona 19.1 Nebraska 27.8 Arkansas 21.7 Nevada 23.7 California 37.1 New Hampshire 23.9 Colorado 23.4 New Jersey 14.5 Connecticut 25.1 New Mexico 19.0 Delaware 22.9 New York 33.9 District of   Columbia 23.4 North Carolina 35.4 North Dakota 23.1 Florida 30.7 Ohio 28.1 Georgia 26.6 Oklahoma 17.1 Hawaii 18.4 Oregon 30.1 Idaho 33.1 Pennsylvania 51.3 Illinois 33.0 Rhode Island 34.0 Indiana 28.9 South Carolina 16.9 Iowa 31.9 South Dakota 30.1 Kansas 24.9 Tennessee 21.3 Kentucky 25.9 Texas 20.1 Louisiana 21.0 Utah 30.0 Maine 31.5 Vermont 30.6 Maryland 32.7 Virginia 16.9 Massachusetts 26.6 Washington 44.5 Michigan 31.0 West Virginia 33.3 Minnesota 30.5 Wisconsin 33.0 Mississippi 18.3 Wyoming 24.1…

To the Internal Revenue Service (IRS), the reasonableness of total itemized deductions depends on the taxpayer's adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger th average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income ($1,000s) 22 Itemized Deductions ($1,000s) 9.6 27 9.6 32 10.1 48 11.1 65 11.5 85 120 19.7 23.5 (a) Develop a scatter diagram for these data with adjusted gross income as the independent variable. 30 25 20 15 • 10 5 Itemized Deductions ($1,000s) 0 20 40 60 80 100 120 Adjusted Gross Income ($1,000s) 140 30 25 20 15 10 5. Itemized Deductions ($1,000s) 30 25 20 15 10 • 15 • 10 5- 0 20 40 60 80 100 120 140 0 Adjusted Gross Income ($1,000s) 20 40 60 80 100…

Plot 2 Out-of-State Tuition 20000 15000 10000 5000 Plot 2: Distribution of Out-of-State Tuition Based on Expenditure Category Above Average Expenditure Expenditure Category Below Average Expenditure

2. Rini prefers red M&Ms over any other color. The Mars Company, makers of M&Ms, claims that 20% of all M&Ms are red. Rini plans to remove M&Ms from her bag one at a time until she gets her first red. How many M&Ms should she expect to remove?

To boost holiday sales, Ginsberg jewelry store is advertising the following promotion: “If more than five inches of snow fall in the first three days of the year (January 1 through January 3), all purchases made between Thanksgiving and Christmas are free!” Based on historical sales records as well as experience with past promotions, the store manager believes that the total holiday sales between Thanksgiving and Christmas could range anywhere between $200,000 and $400,000 but is unsure of anything more specific. Ginsberg has collected data on snowfall from December 16 to January 18 for the past several winters in the file Ginsberg. Construct a simulation model to assess potential refund amounts so that Ginsberg can evaluate the option of purchasing an insurance policy to cover potential losses. What is the probability that Ginsberg will have to refund sales? What is the average refund? Why is this a poor measure to use to assess risk? In the cases when snowfall exceeds 5…

The following table provides data on access to running water in the home for a certain developing country in 2006. Use the table to find answers to the questions. Have running water in the home Do not have running water in the home 100% People in Urban Areas 90% 78,359,000 3,265,000 People in Rural Areas 18,559,000 7,217,000 What percent of people in that country have running water in the house? Round answers to the nearest percent and include the % sign in your answer. Note that this is the number of the people that have running water (both in rural an urban areas) divided by the total number of people in the country (107,400,000). BZW

your car is more crowded than you think.  table 5.8 reports results from a 1969 personal transportation survey on "home-to-work" trips in metropolitan areas. The survey stated that the average car occupancy was 1.4 people. check that calculation.