Question

if a driver in this city is selected at random what is the probability that

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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, M .05 .15 .20 Miles Driven per Year 10,000 - 15,000 inclusive, M2 .10 20 .30 More than 15,000, My 25 .25 .50 Totals .40 .60 1.0 Accident No Accident Totals 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? (Type a decimal.) b. He or she drives 10,000 or more miles per year and has no accidents? (Type a decimal.) Ent

Answer 1

1. P(drives less than 10000 miles per year)=P(L) = 0.20

P(accident) = P(A) =0.40

P(Drives less than 10000 miles and has an accident) = P(L and A) = 0.05

  P(Drives less than 10000 miles or has an accident) = P(L or A)

= P(L) + P(A) - P(L and A)

= 0.2 + 0.4 - 0.05

=0.55

2.  P(drives 10000 or more and has no accident) =

P(drives 10000-15000 and no accident ) + P(drives more than 15000 and no accident)

= 0.20 + 0.25 = 0.45