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An insurance company offers four different deductible

Probability and Statistics for Engineers and the Scientists | 9th Edition | ISBN: 9780321629111 | Authors: Ronald E. Walpole; Raymond H. Myers; Sharon L. Myers; Keying E. Ye ISBN: 9780321629111 32

Solution for problem 21E Chapter 2

Probability and Statistics for Engineers and the Scientists | 9th Edition

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Probability and Statistics for Engineers and the Scientists | 9th Edition | ISBN: 9780321629111 | Authors: Ronald E. Walpole; Raymond H. Myers; Sharon L. Myers; Keying E. Ye

Probability and Statistics for Engineers and the Scientists | 9th Edition

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Problem 21E

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 .06 (6% of all such individuals). 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? 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?

Step-by-Step Solution:

Answer From the given table of probabilities. Step 1 of 6 a) the probability that the individual has a medium auto deductible and a high homeowner’s deductible=0.1 Step 2 of 6 b. the probability that the individual has a low auto deductible and a low homeowner’s deductible=0.06 Step 3 of 6 c. The probability that the individual is in the same category for both auto and homeowner’s deductibles=P(L&L)+P(M&M)+P(H+H) =0.06+0.2+0.15 =0.41

Step 4 of 6

Chapter 2, Problem 21E is Solved
Step 5 of 6

Textbook: Probability and Statistics for Engineers and the Scientists
Edition: 9
Author: Ronald E. Walpole; Raymond H. Myers; Sharon L. Myers; Keying E. Ye
ISBN: 9780321629111

Probability and Statistics for Engineers and the Scientists was written by and is associated to the ISBN: 9780321629111. This textbook survival guide was created for the textbook: Probability and Statistics for Engineers and the Scientists, edition: 9. The answer to “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 .06 (6% of all such individuals). 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? 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?” is broken down into a number of easy to follow steps, and 179 words. Since the solution to 21E from 2 chapter was answered, more than 403 students have viewed the full step-by-step answer. This full solution covers the following key subjects: deductible, low, Probability, individual, homeowner. This expansive textbook survival guide covers 18 chapters, and 1582 solutions. The full step-by-step solution to problem: 21E from chapter: 2 was answered by , our top Statistics solution expert on 05/06/17, 06:21PM.

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