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 0.07 (7% of all such individuals). Homeowner'sAuto NLMHL0.040.070.050.04M0.070.090.200.09H0.020.030.150.15Suppose 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?auto deductible 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? 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 tablegives 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 0.07 (7% of all such individuals).Homeowner'sAutoNLH0.04 0.07 0.05 0.04M0.07 0.090.200.09H0.02 0.03 0.15 0.15Suppose 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?auto deductiblehomeowner'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?

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Answered: An insurance company offers four…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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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 0.07 (7% of all such individuals).

Auto	N	L	M	H
	Homeowner's
L	0.04	0.07	0.05	0.04
M	0.07	0.09	0.20	0.09
H	0.02	0.03	0.15	0.15

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?

auto deductible
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?