An Auto Insurance Company Was Interested in Investigating Accident Rates

question 88

Multiple Choice

An auto insurance company was interested in investigating accident rates for drivers in different age groups.The following table was based on a random sample of drivers and classifies drivers by age group and accident rate. Age Group $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number of accidents } \\\text { in past 3 years }\end{array} & \text { Under 25 } & 25 - 45 & \text { Over 45 } \\\hline 0 & 0.123 & 0.192 & 0.390 \\\hline 1 & 0.086 & 0.072 & 0.077 \\\hline > 1 & 0.023 & 0.019 & 0.018 \\\hline\end{array}$$ What is the probability that a person who had no accidents in the past three years is over 45?

• A)0.390
• B)0.805
• C)0.484
• D)0.553
• E)0.705

Understand the concept of Eurodollars and their significance.

Identify the components and instruments of the money market.

Comprehend key interest rates in the financial markets and their impact.

Grasp the features and tax advantages of municipal bonds.

---

Definitions:

Contingent Fees

A fee arrangement where payment to a professional, especially a lawyer, depends on the successful resolution of a case, often a percentage of the settlement or judgment.

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical) based on moral principles.

Professional Ethics

Encompasses the personal, organizational, and corporate standards of behavior expected of professionals.

Paternalistic View

A perspective that endorses restricting the freedom of individuals for their own good, often without their consent.