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

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
icon
Related questions
icon
Concept explainers
Question

Help me fast.....I will give Upvote....

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Points, Lines and Planes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON