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Mathematics, 09.01.2020 00:31 kasier4600
An insurance salesman has been told by his company that about 20% of the people in a city are likely to buy life
insurance. of those who buy life insurance, around 30% own their homes, and of those who do not buy life
insurance, around 10% own their homes. in the questions that follow, assume that these estimates are correct.
a. if a homeowner is selected at random, what is the probability that the person will buy life insurance?
(hint: use a hypothetical 1,000-person two-way frequency table.)
b. if a person is selected at random from those who do not own their homes, what is the probability that the
person will buy life insurance?
c. is the insurance salesman better off trying to sell life insurance to homeowners or to people who do not own
their homes?
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