Friday, June 17, 2011

Probability, Can I get some help?

Ink Inc., a publishing firm, offers its 899 employees a cafeteria approach to benefits, in which employees can enroll in the benefit plan of their choice. Seven hundred thirteen employees have health insurance, 523 have dental insurance, and 489 have both health and dental insurance. A.) What is the probability p that one of the employees has either health or dental insurance? B.)What is the probability p that one of the employees has health insurance but not dental insurance?
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PART A: If you just add up the employees that have health insurance (713) and those that have dental insurance (523) you'll be double counting the people that have both (489). So you need to add 713 + 523 and subtract 489. 713 + 523 - 489 = 747 employees with either or both types of insurance. P(insurance) = 747/899 ? 83.1% PART B: There are 713 with health insurance, but of these, 489 have both. So subtract them. That will leave those with *only* health insurance. 713 - 489 = 224 employees P(health, not dental) = 224/899 ? 24.9%
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