An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three
Question:
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 Answer:
Probability And Statistics For Engineering And The Sciences
ISBN: 9781305251809
9th Edition
Authors: Jay L. Devore