This preview shows page 1. Sign up to view the full content.
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
This is the end of the preview. Sign up
to
access the rest of the document.
 Spring '06
 Haskell
 Math, Probability

Click to edit the document details