Question

Another probability question from http://saab.org

Answer 1

Okay, so first assume there are 100 people insured to make things simple for us.
45 have auto
70 have home
15 have both
And we know
45 - 15 = 30 have auto only
70 - 15 = 55 have home only

So our new stats
30 auto only
55 home only
15 both
Adding them up give 30+55+15=85+15=100
Looks good so far.

Answer 2

Now we apply the percentages they gave

Answer 3

30 * 0.56 = 16.8
55 * 0.50 = 27.5
15 * 0.71 = 10.65

Add them up: 16.8+27.5+10.65=54.95 ~ 55 people

So if 55 of 100 people renew, then 55% renewed.

Answer 4

Sorry about that.