The probability that a randomly chosen car is insured under liability = 0.70
Since there are twice as many comprehensive policies as there are collision policies, the probability of a randomly chosen car to have a comprehensive policy =0.20 and the probability of a car to have collision policy = 0.10
Let p be the probability that a liability insured car is involved in an accident in a year.
Then the probability that a comprehensive insured car is involved in an accident in a year = 3p and the probability that a collision insured car is involved in an accident = 3p
The overall probability that a randomly chosen car is involved in an accident = 0.7 x p + 0.2 x 3p + 0.1 x 3p = 1/600
1.6 p = 1/600
p = 1/(1.6x600) = 1/960
Probability that a comprehensive insured car is involved in an accident = 3p = 3 x 1/960 = 3/960 = 1/320 = 0.0031
A car insurance company offers three types of insurance: liability, collision and comprehensive. The car insurance...
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A car insurance company has determined that 15% of all drivers were involved in a car accident last year. Among the 10 drivers living on one particular street, 3 were involved in a car accident last year. If 10 drivers are randomly selected, what is the probability of getting 3 or more who were involved in a car accident last year?
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