An insurance agent meets twelve potential customers independently, each of whom is equally likely to purchase...

An insurance agent meets twelve potential customers independently, each of whom is equally likely to purchase an insurance product. Six are interested only in auto insurance, four are interested only in homeowners insurance, and two are interested only in life insurance. The agent makes six sales.

Calculate the probability that two are for auto insurance, two are for homeowners insurance, and two are for life insurance.

Solutions

Expert Solution

Total customers = 6 + 4 + 2 = 12

Hence,

P(Two are for auto insurance, two are for homeowners insurance, and two are for life insurance)

= 0.0974

orchestra answered 2 years ago

Next > < Previous

Related Solutions

In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically,...

In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically, one in four such customers chooses to buy life insurance from this agent. You may treat this as a binomial experiment. What is the probability of success for this problem? What is the total number of trials in this problem? Create a probability distribution table which includes the value for the random variable and the probability of each possible outcome of the random variable....

1)In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically,...

1)In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically, one in four such customers chooses to buy life insurance from this agent. You may treat this as a binomial experiment. What is the probability of success? What is the total number of trials? Create a probability distribution table which includes probability of each possible outcome. Also create the cumulative probability column. What is the probability that exactly five customers will buy life insurance...

Two customers enter a store. Independently, they make decisions to purchase or not to purchase. The...

Two customers enter a store. Independently, they make decisions to purchase or not to purchase. The following diagram shows how the outcomes can occur and combine with red holding of sequence Customer 1 does not purchase and Customer 2 does not Purchase. The possible outcome are shown. If the event is the number of purchases, 3 events are possible: 0 purchases, 1 purchase, and 2 purchases. which one rule applies to the sequence of independent outcomes of Customer 1 and...

Life insurance salesman meets his prospective customers separately. At each meeting, he makes the same effort...

Life insurance salesman meets his prospective customers separately. At each meeting, he makes the same effort to persuade the prospective client to be insured. The vendor's understanding after a long term in the insurance business is that the probability of persuading the customer to be insured (probability of success) is 0,1. What is the probability in 4 trials to insure one of them?

Life insurance salesman meets his prospective customers separately. At each meeting, he makes the same effort...

Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom hold...

Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom hold 2,900 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 630 of her shares for $26,600 per share on December 31 of this year. Wilma’s income tax basis in each share is $6,350. Flintstone has current E&P of $10,830,000 and accumulated E&P of $50,070,000. What is the amount and character (capital...

Your friend and you are both shopping for car insurance. Suppose you are equally likely to...

Your friend and you are both shopping for car insurance. Suppose you are equally likely to get in a car accident and both of your cars are worth the same. You are less risk averse than your friend. Therefore your friend is willing to pay more for an insurance policy than you that completely covers the loss in case of an accident. True of False?

There are 36 students in the classroom. Assuming each date of the year are equally likely...

There are 36 students in the classroom. Assuming each date of the year are equally likely to be the birthday of a student. Calculate the probability that there are at least two students having the same birthday. use probability and stats to solve

A 3-person jury has 2 members each of whom have independently a probability 0.7 of making...

A 3-person jury has 2 members each of whom have independently a probability 0.7 of making a correct decision. The third juror just flips a coin for each decision. In this jury, the majority rules. A 1-person jury has a probability 0.7 of making a correct decision. What is the probability of the best jury of making a correct decision?

Cuong, an insurance agent who earns pay on commission, wants Trung to purchase an expensive insurance...

Cuong, an insurance agent who earns pay on commission, wants Trung to purchase an expensive insurance policy. Trung resists accepting his offer, but Cuong compels him to purchase the policy by threatening him with a knife, so he signs the insurance documents. Trung now has a comprehensive insurance policy, but he has the defense of _______ if he wants to breach the contract. 1. misrepresentation 2. misstatement 3. fraud 4. undue influence 5. duress

Subjects