An automobile insurance company is in the process of reviewing its policies.Currently,drivers under the age of 25 have to pay a premium.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 has been involved in at least one automobile accident.
What is the probability that an insured driver of any age will be involved in an accident?
A)35%
B)20.5%
C)65%
D)68.3%
E)79.5%

Question

Quizplus · Accepted Answer

To find the probability that an insured driver of any age will be involved in an accident, we need to calculate the total number of insured drivers who have been in an accident and divide it by the total number of insured drivers. 
Total number of insured drivers who have been in an accident = 280 + 130 = 410
Total number of insured drivers = 700 (under 25) + 1300 (25 or older) = 2000
Probability = 410/2000 = 0.205 = 20.5% 
Therefore, the best choice is B, with the explanation above.

An Automobile Insurance Company Is in the Process of Reviewing