Question

12.16. [1999 Sample:10] An insurance policy covers the two employees of ABC Company, Joe and Jo. The policy will reimburse ABC for no more than one loss per employee in a year. It reimburses the full amount of the loss up to an annual company-wide maximum of 8000. The probability of an employee incurring a loss in a year is 40%. The probability that an employee incurs a loss is independent of the other employee's losses. The amount of each loss is uniformly distributed on [1000, 5000]. Given that Joe has incurred a loss in excess of 2000, determine the probability that losses will exceed reimbursements. (A) 1/20 (B) 1/15 (C) 1/10 (D) 1/8 (E) 1/6

          12.16. [1999 Sample:10] An insurance policy covers the two employees of ABC Company, Joe and Jo. The policy will reimburse ABC for no more than one loss per employee in a year. It reimburses the full amount of the loss up to an annual company-wide maximum of 8000.
The probability of an employee incurring a loss in a year is 40%. The probability that an employee incurs a loss is independent of the other employee's losses.
The amount of each loss is uniformly distributed on [1000, 5000].
Given that Joe has incurred a loss in excess of 2000, determine the probability that losses will exceed reimbursements.
(A) 1/20 (B) 1/15 (C) 1/10 (D) 1/8 (E) 1/6

12.16. [1999 Sample:10] An insurance policy covers the two employees of ABC Company, Joe and Jo. The policy will reimburse ABC for no more than one loss per employee in a year. It reimburses the full amount of the loss up to an annual company-wide maximum of 8000.
The probability of an employee incurring a loss in a year is 40%. The probability that an employee incurs a loss is independent of the other employee's losses.
The amount of each loss is uniformly distributed on [1000, 5000].
Given that Joe has incurred a loss in excess of 2000, determine the probability that losses will exceed reimbursements.
(A) 1/20 (B) 1/15 (C) 1/10 (D) 1/8 (E) 1/6

Added by Brenda B.

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