An Automobile Insurance Company Is in the Process of Reviewing

question 176

Multiple Choice

An automobile insurance company is in the process of reviewing its policies. Currently drivers under the age of 25 have to pay a certain premium. The company is considering increasing the value of the premium charged to drivers under 25. According to company records, 35% of the insured drivers are under the age of 25. The company records also show that 280 of the 700 insured drivers under the age of 25 had been involved in at least one automobile accident. On the other hand, only 130 of the 1300 insured drivers 25 years or older had 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?

• A)0.35
• B)0.205
• C)0.14
• D)0.683
• E)0.4

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Definitions:

Society

A community of people living together in a more or less organized way, establishing norms and institutions that define the collective social behavior.

Executive Control Centre

A component of the brain responsible for regulating attention, problem-solving, and adaptable behavior in complex situations.

Prefrontal Cortex

The frontal part of the brain involved in complex behaviors such as planning, decision making, and moderating social behavior.

Adolescent Behaviour

The range of actions and manners displayed by individuals navigating the transition from childhood to adulthood, characterized by exploration, identity formation, and emotional development.