Score: 0 of 4 pts 9 of 10 (7 complete) HW Score: 65%, 26 of 40 pt Bus Econ 8.2.8

Question

Score: 0 of 4 pts 9 of 10 (7 complete) HW Score: 65%, 26 of 40 pt Bus Econ 8.2.81 Question Help Insurance. By examining the past driving records of drivers in a certain city, an insurance company has determined the following (empirical) probabilities: Less than 10,000, Miles Driven per Year 10,000- 15,000 inclusive More than 15,000 Totals .50 .50 1.0 .25 .30 .20 Accident No Accident Totals .05 10 .30 If a driver in this city is selected at random, what is the probability that a. He or she drives less than 10,000 miles per year or has an accident? 0.60 (Type a decimal.) b. He or she drives 10,000 or more miles per year and has no accidents? (Type a decimal.)

Explanation / Answer

a) P(he or she drives less than 10,000 miles per year or has an accident) = 0.05 + 0.20 + 0.25 + 0.10 = 0.60

b) P(he or she drives 10,000 or more miles per year and has no accidents) = 0.10 + 0.30 = 0.40

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