An Automobile Insurance Company Is in the Process of Reviewing

question 50

Short Answer

An automobile insurance company is in the process of reviewing its policies. The company is considering increasing the premium charged to drivers under 25. According to company records, 35 percent of the insured drivers are under the age of 25. Company records also show that 280 of the 700 insured drivers under the age of 25 have been involved in at least one automobile accident. On the other hand, only 130 of the 1300 insured drivers 25 years or older have been involved in at least one automobile accident.
An accident has just been reported. What is the probability that the insured driver is under the age of 25?

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Definitions:

Sexual Reproduction

A biological process by which organisms create offspring by combining genetic material from two different sexes, leading to genetic diversity.

Civil Disobedience

The act of intentionally breaking or refusing to comply with laws as a form of peaceful political protest.

Martin Luther King

An American civil rights leader who played a pivotal role in advancing civil rights in the United States through nonviolent protest, notably the "I Have a Dream" speech.

Gandhi

Mohandas Karamchand Gandhi, an Indian lawyer, anti-colonial nationalist, and political ethicist, who employed nonviolent resistance to lead the successful campaign for India's independence from British rule.