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:

Well-Balanced Diet

A diet that contains the correct proportions of carbohydrates, fats, proteins, vitamins, and minerals for optimal health and function.

Epidemic

The rapid spread of an infectious disease to a large number of people within a short period of time, geographically localized.

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A medical imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to create cross-sectional images of the body.

N-95 Respirator Mask

A respiratory protective device designed to achieve a very close facial fit and very efficient filtration of airborne particles, known for its capability to filter out at least 95% of airborne particulates.