1. The following table shows how a sample of 100 students are distributed in terms of hair and eye color (natural color, not dyed or tinted). Light Hair 25 15 Dark Hair 10 50 Light Eyes Dark Eyes Your friend says, "Hair color and eye color are independent. Just because you have dark hair doesn't automatically mean you have dark eyes." Your friend is wrong, they are not independent. Help explain it to them.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 26PFA
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1. The following table shows how a sample of 100 students are distributed in terms of hair and eye color (natural color, not dyed or tinted).
Light Hair
25
15
Light Eyes
Dark Eyes
Dark Hair
10
50
Your friend says, "Hair color and eye color are independent. Just because you have dark hair doesn't automatically mean you have dark eyes." Your friend is wrong, they are not independent. Help explain it to them.
2. Suppose that you are working at an insurance company that uses probability models to help price its life insurance policies. One piece of information that goes into the pricing model is whether or not the person uses
tobacco. If the company knows the person uses tobacco, then they charge a higher amount for the life insurance policy, based on the claim that using tobacco and cancer are not independent events. What does the
company mean? Do they mean that a person who uses tobacco is bound to get cancer? Why does the company charge a higher premium for these customers? Try answer using some of the terminology about probabilities
that we have been using in class.
Transcribed Image Text:1. The following table shows how a sample of 100 students are distributed in terms of hair and eye color (natural color, not dyed or tinted). Light Hair 25 15 Light Eyes Dark Eyes Dark Hair 10 50 Your friend says, "Hair color and eye color are independent. Just because you have dark hair doesn't automatically mean you have dark eyes." Your friend is wrong, they are not independent. Help explain it to them. 2. Suppose that you are working at an insurance company that uses probability models to help price its life insurance policies. One piece of information that goes into the pricing model is whether or not the person uses tobacco. If the company knows the person uses tobacco, then they charge a higher amount for the life insurance policy, based on the claim that using tobacco and cancer are not independent events. What does the company mean? Do they mean that a person who uses tobacco is bound to get cancer? Why does the company charge a higher premium for these customers? Try answer using some of the terminology about probabilities that we have been using in class.
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