You work at a company that processes car insurance applications. The company ins

Question

You work at a company that processes car insurance applications. The company insures vehicles based on risk (low, moderate, high). Other risk factors include marital status (married, unmarried). You have been asked to support the insurance sales manager by providing some statistics. Given the following information, draw a joint probability table. Customers are rated as High, Moderate or Low Risk based on their vehicle and marital status. The probability of being a High Risk customer is 20% and Low Risk is 45%. You do research and find that 65% of your customers are married. Those events are independent. What is the probability of being unmarried. (Put answer in probabilities not percents. Your answer must be between 0 and 1. Lead with a 0 prior to the decimal point.) What is the probability of being a customer rated MODERATE risk who is UNMARRIED? (Put answer in probabilities, not percents, Lead with a 0 prior to the decimal point and use 4 decimal points)

Explanation / Answer

as probabilty of an event =1-P(event does not happen)

from above probabilty of being unmarried =1-P(of being married) =1-0.65 =0.35

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