Homeowner's Auto N L M H L .04 .06 .05 .03 M .07 .10 .20 .10 H .02 .03 .15 .15

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
icon
Concept explainers
Question

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 proportions for the various categories of policyholders who have both types of insurance. For example, the
proportion of individuals with both low homeowner’s deductible and low auto deductible is .06 (6% of all such individuals).
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?

Homeowner's
Auto
N
L
M
H
L
.04
.06
.05
.03
M
.07
.10
.20
.10
H
.02
.03
.15
.15
Transcribed Image Text:Homeowner's Auto N L M H L .04 .06 .05 .03 M .07 .10 .20 .10 H .02 .03 .15 .15
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Conditional Probability, Decision Trees, and Bayes' Theorem
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman