An insurance company offers four different
Chapter 2, Problem 21(choose chapter or problem)
An insurance company offers four different deductible levelsnone, low, medium, and highfor its homeownerspolicyholders and three different levelslow, medium,and highfor its automobile policyholders. The accompanyingtable gives proportions for the various categoriesof policyholders who have both types of insurance. Forexample, the proportion of individuals with both lowhomeowners deductible and low auto deductible is .06(6% of all such individuals). HomeownersAuto N L M H L .04 .06 .05 .03 M .07 .10 .20 .10 H .02 .03 .15 .15Suppose an individual having both types of policies israndomly selected.a. What is the probability that the individual has amedium auto deductible and a high homeownersdeductible?b. What is the probability that the individual has a lowauto deductible? A low homeowners deductible?c. What is the probability that the individual is in the samecategory for both auto and homeowners deductibles?d. Based on your answer in part (c), what is the probabilitythat the two categories are different?e. What is the probability that the individual has at leastone low deductible level?f. Using the answer in part (e), what is the probabilitythat neither deductible level is low?
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer