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gavmur [86]
3 years ago
5

(1) An insurance agency sells various types of insurance policies. 40% of their clients buy auto insurance policies, 30% of thei

r clients buy home insurance policies, and 15% of their clients buy both home and auto insurance policies. a. Compute the probability a randomly selected client buys a home or auto insurance policy.
Mathematics
1 answer:
yaroslaw [1]3 years ago
6 0

Answer:

55% or 0.55(as a decimal)

Step-by-step explanation:

40% of their clients buy auto insurance policies = P(A)

30% of their clients buy home insurance policies = P(H)

15% of their clients buy both home and auto insurance policies = P( A ∩ H)

The probability a randomly selected client buys a home or auto insurance policy = P (A ∪ H) is calculated as

P ( A ∪ H) = P(A ) + P ( H ) - P( A ∩ H)

= 40% + 30% - 15 %

= 70% - 15%

= 55%

Therefore, the probability that a randomly selected client buys a home or auto insurance policy is 55% or expressed as decimal = 0.55

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