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Problem 2. An insurance company offers four different deductible levels: none, low, medium, and high for its homeowner 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 deductible and low automobile deductible is 0.06 or 6% of all individuals. Homeowner Automobile None Low Medium High Low 0.04 0.06 0.05 0.03 Medium High 0.07 0.10 0.20 0.10 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 automobile deductible and a high homeowner deductible? b. What is the probability that the individual has a low automobile deductible? C. What is the probability that the individual is in the same category for both automobile and homeowner deductibles? d. 14 What is the probability that the individual is in different categories of automobile and homeowner's deductibles? e. What is the probability that the individual has at least one low deductible? What is the probability that the individual has no low deductibles?

Problem 2. An insurance company offers four different deductible levels: none, low, medium, and high for its homeowner 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 deductible and low automobile deductible is 0.06 or 6% of all individuals. Homeowner Automobile None Low Medium High Low 0.04 0.06 0.05 0.03 Medium High 0.07 0.10 0.20 0.10 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 automobile deductible and a high homeowner deductible? b. What is the probability that the individual has a low automobile deductible? C. What is the probability that the individual is in the same category for both automobile and homeowner deductibles? d. 14 What is the probability that the individual is in different categories of automobile and homeowner's deductibles? e. What is the probability that the individual has at least one low deductible? What is the probability that the individual has no low deductibles?

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Problem 2. An insurance company offers four different deductible levels: none, low, medium, and high for its homeowner 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 deductible and low automobile deductible is 0.06 or 6% of all individuals. Homeowner Automobile None Low Medium High Low 0.04 0.06 0.05 0.03 Medium High 0.07 0.10 0.20 0.10 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 automobile deductible and a high homeowner deductible? b. What is the probability that the individual has a low automobile deductible? C. What is the probability that the individual is in the same category for both automobile and homeowner deductibles? d. 14 What is the probability that the individual is in different categories of automobile and homeowner's deductibles? e. What is the probability that the individual has at least one low deductible? What is the probability that the individual has no low deductibles?
Transcribed Image Text:Problem 2. An insurance company offers four different deductible levels: none, low, medium, and high for its homeowner 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 deductible and low automobile deductible is 0.06 or 6% of all individuals. Homeowner Automobile None Low Medium High Low 0.04 0.06 0.05 0.03 Medium High 0.07 0.10 0.20 0.10 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 automobile deductible and a high homeowner deductible? b. What is the probability that the individual has a low automobile deductible? C. What is the probability that the individual is in the same category for both automobile and homeowner deductibles? d. 14 What is the probability that the individual is in different categories of automobile and homeowner's deductibles? e. What is the probability that the individual has at least one low deductible? What is the probability that the individual has no low deductibles?
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