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Panda
Posted: Sun Mar 18, 2007 11:28 am
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I have this problem.

According to automobile accident statistics, one out of every six accidents results in a insurance claim of $100 or less in property damage. Three cars insured by an insurance company are involved in different accidents. Considering these two events:
A: The majority of claims exceed $100
B: Exactly two claims are $100 or less.

Find P(A) and P(B).

I have two answers:
1. P(A) = 5/6 and P(B) = 1/6
2. P(A) = 5/6 and P(B) = 1/2 x 1/6 = 1/12

Firstly, I think the first answer is correct. However, the event B explanation makes me confuse, and then, I think the second is the right one.

Which one is correct? Do you have any idea?

Panda
 
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