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Automobile owner purchases

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Reference no: EM131166996

An actuary studying the insurance preferences of automobile owners makes the following conclusions:

(i) An automobile owner is twice as likely to purchase collision coverage as disabilitycoverage.

(ii) The event that an automobile owner purchases collision coverage is independentof the event that he or she purchases disability coverage.

(iii) The probability that an automobile owner purchases both collision and disabilitycoverages is 0.15. What is the probability that an automobile owner purchases neither collision nordisability coverage?

Reference no: EM131166996

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