An actuary studying the insurance preferences of automobile owners makes the following conclusions: (1) An automobile owner is twice as likely to purchase collision coverage as disability coverage. (ii) The event that an automobile owner purchases collision coverage is independent of the event that he or she purchases disability coverage. (lii) The probability that an automobile owner purchases both collision and disability coverages is 0.15. Calculate the probability that an automobile owner purchases neither collision nor disability coverage. Select one: a. 0.18 b. 0.48 C. 0.33 d. 0.67

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 4ECP: Show that the probability of drawing a club at random from a standard deck of 52 playing cards is...
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An actuary studying the insurance preferences of automobile owners makes the following
conclusions:
(1) An automobile owner is twice as likely to purchase collision coverage as disability coverage.
(ii) The event that an automobile owner purchases collision coverage is independent of the event
that he or she purchases disability coverage.
(lii) The probability that an automobile owner purchases both collision and disability coverages is
0.15.
Calculate the probability that an automobile owner purchases neither collision nor disability
coverage.
Select one:
a. 0.18
b. 0.48
C. 0.33
d. 0.67
Transcribed Image Text:An actuary studying the insurance preferences of automobile owners makes the following conclusions: (1) An automobile owner is twice as likely to purchase collision coverage as disability coverage. (ii) The event that an automobile owner purchases collision coverage is independent of the event that he or she purchases disability coverage. (lii) The probability that an automobile owner purchases both collision and disability coverages is 0.15. Calculate the probability that an automobile owner purchases neither collision nor disability coverage. Select one: a. 0.18 b. 0.48 C. 0.33 d. 0.67
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