Math 218
Quiz 1
1/22/09
Show Your Work!!!!
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 the number of policyholders
who have both types of insurance.
Homeowner’s
Auto
None
Low
Med
High
Total
low
8
12
10
6
36
med
14
20
40
20
94
high
4
6
30
30
70
total
26
38
80
56
200
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?
P(med and High) = 20/200 =
.1
b)
What is the probability that the individual has a low auto deductible?
P(low) = 36/200 =
.18
c)
What is the probability that the individual has a low or medium homeowner’s deductible?
P(Low or Med) = P(Low) + P(Med) = 38/200 + 80/200 = 118/200 =
.59
Since mutually exclusive
d)
What’s the probability that the individual has a medium auto deductible or has no
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This note was uploaded on 02/13/2009 for the course MATH 218 taught by Professor Haskell during the Spring '06 term at USC.
 Spring '06
 Haskell
 Math, Probability

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