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An auto insurance company concludes that 30% of policyholders with only collision coverage will have a...

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Basic Math

An auto insurance company concludes that 30% of policyholderswith only collision coverage will have a claim next year, 40% ofpolicyholders with only comprehensive coverage will have a claimnext year and 50% of policyholders with both collision andcomprehensive coverage will have a claim next year. Records show60% of policyholders have collision coverage 70% have comprehensivecoverage and all policyholders have at least one of thesecoverages.

Calculate the percentage of policyholders expected to have anaccident next year.

  1. 10%

  2. 20%

  3. 31%

  4. 36%

  5. 40%

Answer & Explanation Solved by verified expert
3.6 Ratings (270 Votes)
We are given here that P collision coverage 06 P comprehensive coverage 07 Therefore using law of addition of probability we get here P collision coverage and comprehensive coverage P collision    See Answer
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