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Question - Fuel Consumption and Cars An automobile insurance policy depends on many factors, including the vehicle type, year, make, and model, type of coverage, your driving history, your insurance score based on claims history, payment history, and credit score, and your state of residence. Suppose that for some driver category, the probability distribution for the random variable Y, the amount (in dollars) paid to policyholders for claims in one year, is given in the table below.
y
0
500
1000
5000
10000
p(y)
0.65
0.20
0.10
0.04
0.01
a. Find P(Y > 0).
b. Find P(Y ≤ 1000).
c. What is the probability that a randomly selected driver is paid $5000?
d. Suppose two drivers are selected at random. What is the probability that both are paid $1000?
e. Suppose two drivers are selected at random. What is the probability that at least one is paid $500 or more?
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