An Auto Insurance Company Was Interested in Investigating Accident Rates

question 26

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 $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number of accidents } \\\text { in past 3 years }\end{array} & \text { Under 25 } & 25 - 45 & \text { Over 45 } \\\hline 0 & 0.124 & 0.194 & 0.386 \\\hline 1 & 0.079 & 0.071 & 0.080 \\\hline > 1 & 0.030 & 0.019 & 0.017 \\\hline\end{array}$$ Suppose one of these people is selected at random.Compute the probability that the person has had more than one accident in the past three years.

• A)0.232
• B)0.230
• C)0.066
• D)0.030
• E)0.296

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Definitions:

Customer Inquiries

Refers to questions or requests for information made by customers regarding a company's products or services.

Customer Service

The help and counsel furnished by an organization to individuals who acquire or engage with its offerings.

Brand Recognition

The degree to which customers can identify the brand under a variety of circumstances.

Transparency

Involves opening up the company to the outside world by making its practices, policies, and future plans available to customers.