Insurance An insurance company estimates that 40% of policyholders who have only an auto policy will renew next year and 60% of policyholders who have only a homeowners policy will renew next year. The company estimates that 80% of policyholders who have both an auto and a homeowners policy will renew at least one of these policies next year. Company records show that 65% of policyholders have an auto policy, 50% of policyholders have a homeowners policy, and 15% of policyholders have both an auto and a homeowners policy. Using the company’s estimates, calculate the percentage of policyholders that will renew at least one policy next year. Choose one of the following. Source: Society of Actuaries.
- (a) 20
- (b) 29
- (c) 41
- (d) 53
- (e) 70
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Finite Mathematics and Calculus with Applications (10th Edition)
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