MATH 218 Quiz 1 solutions

MATH 218 Quiz 1 solutions - Quiz 1 Show Your Work! An...

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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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