
Advanced Statistics Advanced Probability and Statistics Math Forum 
 LinkBack  Thread Tools  Display Modes 
February 28th, 2014, 08:16 PM  #1 
Newbie Joined: Nov 2013 Posts: 3 Thanks: 0  Probability Problem / Insurance problem
Not sure what to title this post. It's from basic probability but it's been about a year and a half. I'm studying for exam P and experienced this problem at the end of the section I'm reading and am having trouble figuring out precisely what to do. I know the answer is 0.5 but not clear on how to get there. I tried 2 ways and got 97/144 once and 23/36 another time. So here is the question. An insurer offers a health plan to the employees of a large company. As part of this plan, the individual employees may choose exactly two of the supplementary coverages A; B; and C; or they may choose no supplementary coverage. The proportions of the company's employees that choose coverages A; B; and C are 1/4, 1/3, and 5/12, respectively. Determine the probability that a randomly chosen employee will choose no supplementary coverage. Any insight will be appreciated. 
March 1st, 2014, 02:00 PM  #2 
Global Moderator Joined: May 2007 Posts: 6,665 Thanks: 651  Re: Probability Problem / Insurance problem
1/4 + 1/3 + 5/12 = 1. Since the employees who chose a plan had to choose 2, divide by 2 to get fraction of employees who chose plans (1/2). The remaining 1/2 chose no plan.

March 1st, 2014, 03:50 PM  #3 
Newbie Joined: Nov 2013 Posts: 3 Thanks: 0  Re: Probability Problem / Insurance problem
Thanks so much. I had considered that but it seemed way too simple. I guess overthinking is gonna be a problem on exam P.


Tags 
insurance, probability, problem 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Insurance Policy Problem  Camero  Advanced Statistics  2  December 31st, 2013 11:10 AM 
Probability Question  auto insurance  aaronmath  Probability and Statistics  2  September 11th, 2012 12:33 PM 
How to divide insurance payout fairly  thirst4answer  Economics  60  July 8th, 2012 08:20 AM 
Whole life insurance problem  aga  Economics  1  July 6th, 2010 07:01 AM 
Help with a probability problem  al_teothc  Algebra  1  October 19th, 2009 03:48 PM 