Question

A person owns both her own business and her own home and purchases a cariety of insurances to protect them. In any one year the probability of an insurance claim on the business is .4 and on the home is .05. Assuming that these are independent events, find the probability that this person will have an insurance claim at

a.) both home and business

b.) exactly one place

c.) neither

Answer 1

a: Pr= .4*.05
b: Pr=.4*.95+ .05*.6=..
c: Pr= 1-Pr(a)-Pr(b)