ashi70

August 24th 2005, 11:52 AM

An insurance company examines its pool of auto insurance customers and gathers the following

information:

(i) All customers insure at least one car.

(ii) 70% of the customers insure more than one car.

(iii) 20% of the customers insure a sports car.

(iv) Of those customers who insure more than one car, 15% insure a sports car.

Calculate the probability that a randomly selected customer insures exactly one car and that car

is not a sports car.

A. 0.13 B. 0.21 C. 0.24 D. 0.25 E. 0.30

Ans:- Please help me solve this question. I am having confusion as to when to use Intersection and when to use conditional prob. How should I represent (iv). Is it P(M|C) or P(M[Intersec]C) Where M is the event of insuring multiple cars and C is event of insuring sports car. Also please give me correct answer.

Thanks a bunch

information:

(i) All customers insure at least one car.

(ii) 70% of the customers insure more than one car.

(iii) 20% of the customers insure a sports car.

(iv) Of those customers who insure more than one car, 15% insure a sports car.

Calculate the probability that a randomly selected customer insures exactly one car and that car

is not a sports car.

A. 0.13 B. 0.21 C. 0.24 D. 0.25 E. 0.30

Ans:- Please help me solve this question. I am having confusion as to when to use Intersection and when to use conditional prob. How should I represent (iv). Is it P(M|C) or P(M[Intersec]C) Where M is the event of insuring multiple cars and C is event of insuring sports car. Also please give me correct answer.

Thanks a bunch