An Auto Insurance Company Was Interested in Investigating Accident Rates

question 55

Multiple Choice

An auto insurance company was interested in investigating accident rates for drivers in different age groups.The following contingency table was based on a random sample of drivers and classifies drivers by age group and number of accidents in the past three years. Age Group $$\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Number of accidents } \\\text { in past 3 years }\end{array} & < 25 & 25 - 45 & > 45 & \text { Total } \\\hline 0 & 98 & 145 & 296 & 539 \\\hline 1 & 60 & 70 & 77 & 207 \\\hline > 1 & 22 & 5 & 2 & 29 \\\hline \text { Total } & 180 & 220 & 375 & 775 \\\hline\end{array}$$ If one of these drivers is selected at random,find the probability that the person has had no accidents in the last three years or is younger than 25.

• A)0.928
• B)0.126
• C)0.544
• D)0.182
• E)0.801

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Definitions:

Dissociates

The act of separating or detaching oneself from a legal, business, or personal relationship.

Limited Liability Company

A legal entity where the owners are protected from personal liability for the debts of the company beyond their initial investment.

Agency

A legal relationship in which one party, known as the agent, is authorized to act on behalf of another, known as the principal, in dealing with third parties.

Legal Entity

An organization or structure that is recognized by law as capable of legal rights and obligations, such as a corporation or partnership.